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Beijing - China’s pricing authority has fined consumer product giant Unilever 2 million yuan ($308 000) for saying it might increase prices of some products in China.
The National Development and Reform Commission (NDRC), a powerful central planning agency, said on Friday that comments by Unilever officials about possible price rises had “intensified inflationary expectations among consumers” and “seriously distorted market order.”
Local media had reported in March that Unilever and Procter & Gamble planned to raise detergent and soap prices in April, due to soaring raw materials costs. But the increases were not carried out because the pricing authority intervened after news of the plan led to panic buying by consumers, according to the reports.
P&G has not announced any pricing changes in China, a spokesperson for the US company said on Friday.
The government said the high-profile announcement had violated pricing regulations.
Consumer price inflation hit a 32-month high of 5.4% in the year to March. Beijing has put controlling inflation at the top its economic agenda this year.
The National Development and Reform Commission (NDRC), a powerful central planning agency, said on Friday that comments by Unilever officials about possible price rises had “intensified inflationary expectations among consumers” and “seriously distorted market order.”
Local media had reported in March that Unilever and Procter & Gamble planned to raise detergent and soap prices in April, due to soaring raw materials costs. But the increases were not carried out because the pricing authority intervened after news of the plan led to panic buying by consumers, according to the reports.
P&G has not announced any pricing changes in China, a spokesperson for the US company said on Friday.
The government said the high-profile announcement had violated pricing regulations.
Consumer price inflation hit a 32-month high of 5.4% in the year to March. Beijing has put controlling inflation at the top its economic agenda this year.
