Beijing signalled that its anti-inflation crusade does not preclude all price rises after a watchdog said Unilever, the consumer goods conglomerate, would not be punished for raising the amount it charges retailers for some necessities.
Unilever was fined RMB2m ($300,000) this month for publicising its intention to raise some prices – a move that triggered panic buying. Official media have reported that Unilever told retailers it would increase the cost of some body care and beauty products. Unilever refused to confirm the news. Carrefour, the retailer, said it would not immediately pass price rises on to consumers.
Li Qing, deputy director-general of the department of pricing supervision at the National Development and Reform Commission (NDRC), China’s top planning agency, told the official China Daily that Unilever would not be punished for the move.