

A student's food at a Beijing college.

Beijing has vowed to tame inflation and try its best to rein in sky-rocketing house prices in 2011, as Premier Wen Jiabao reassured the Chinese public increasingly worried about price rises across the board.Taking questions from a few listeners on China's state radio on Sunday, Wen acknowledged that rising costs of living had made life harder for China's poor, particularly college and middle school students from the vast rural regions.Domestic food prices soared this year, driving inflation to rise by 5.1 percent in November, the fastest increase in 28 months and well above Beijing's full-year target of 3 percent set by the central government.But, the popular Chinese prime minister said he has confidence to curb inflation. Measures taken last month, including price controls to curb speculation and monetary tightening, have started to produce results, Wen said.The central government has raised the reserve requirement ratio for banks six times and increased interest rates twice this year to mop up redundant liquidity and rein in flooding credit to support healthy economic growth in 2011.The State Council, China's cabinet, has also been trying to rein in food prices by increasing production of vegetables and other basic goods. "I believe we can keep prices at a reasonable level through our efforts. As a major leader of the government, I have the responsibility and I have the confidence, too," Wen said, referring to large grain reserves as well as moves to support production by reducing and waiving taxes.China's central bank on Saturday raised interest rates for the second time in less than three months as authorities stepped-up efforts to curb borrowing, rein in property prices and tame inflation.Wen told listeners on the state radio: "The recent rise in prices across China has actually made life even more difficult for people on low and medium incomes." But he stressed that thanks to government intervention "we are fully able to control the general level of prices".Responding to questions from listeners Wen said his government was also determined to dampen runaway property prices which have seen moderate and low income people priced-out of the urban housing market.He said the government was committed to boosting housing supply and built 3.7 million government-subsidized housing units this year, with a further 10 million public units for rent and sale to be started next year."I am confident that through our efforts, housing prices will return to a reasonable level," Wen said.Chinese analysts estimated that Beijing is expected to raise the interest rates by at least 100 basic points in 2011 to control inflation. Most economists put China's economic growth rate for 2011 at more than 9 percent but below 10 percent.