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"The market in general thinks the macro environment is stable
and market supply is sufficient," an official at the pricing
department of the National Development and Reform Commission
said.
"The overall price level will continue to stabilize and it's
unlikely that prices will rise significantly," he added, in
comments published on the agency's website.
Annual consumer inflation in the world's No.2 economy held
steady in May from the previous month, as food prices remained
largely stable, official data showed earlier this month.
But the remarks come amid escalating trade tensions with the
United States, fuelling worries over upward pressure on China's
consumer price index.
Agriculture products in particular could jump after Beijing
imposes tariffs from July 6 on imports of U.S. soybeans and
other products used to feed its huge livestock sector.
That would lead to further upward pressure on pork prices, which
have a large weighting in the consumer inflation basket.
The statement noted however that pig production capacity is at a
high level while grain and edible oil stocks were also
relatively high.
In another move aimed at ensuring economic stability, China said
last week that it would use targeted cuts in banks' reserve
requirement ratios (RRR) and other policy tools to boost credit
support for small firms and ensure steady growth.
(Reporting by Yawen Chen and Dominique Patton; Editing by
Stephen Coates)
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