Inflation Endangering China ‘Dream’ Spurs Wen Price Pledge

Premier Wen Jiabao’s pledge to stem inflation in China underscored forecasts for more interest-rate increases as a jump in food and housing prices risks sparking public anger.

Wen, in his opening speech to the annual National People’s Congress conclave in Beijing two days ago, said that reining in consumer and property prices is the nation’s top priority. That will be welcome to fruit vendor Song Zhiqiang, 56, of the southwestern city of Guiyang, who says: “My rent’s doubled in a year and my family’s food budget has increased to 3,000 yuan,” or $456, from 1,200 yuan.