China's top economic planner said Thursday the country would avoid large, widespread and long-term price rises as overall supply would match demand in the foreseeable future.

The National Development and Reform Commission (NDRC) said in a statement that a "surge in credit and continuous price rises of certain products and property resulted in rising inflation expectations in the country."

"Sufficient material supply," such as ample reserves of grain and competitive pressures would help stabilize prices, the NDRC said, without providing details.

The NDRC asked local authorities to step up strict price monitoring and to stabilize prices of important products, including food, gas and transport.

Efforts should be made to avoid concentrated price rises and large price rises, said the statement.

Average pork prices nationwide stood at 17.79 yuan (US$2.6) per kilogram Tuesday, up 3.3 percent from a week earlier. By August 12, pork prices had risen for nine consecutive weeks, up 15.8 percent, according to the Ministry of Agriculture Monday.

Prices of eggs Tuesday stood at 7.83 yuan per kilogram, up 2.5 percent from a week earlier. By August 23, egg prices had risen for five consecutive weeks, up 6.2 percent, according to the Ministry's wedsite.

However, the rises were a natural result of previous prices being too low, said Lin Songli, a microeconomic analyst with Guosen Securities Thursday.

The current average pork price was 23.5 percent lower than the same time last year and 17.1 percent down from the highest level this year, said Liu Yuman, an economic researcher with the Chinese Academy of Social Sciences Wednesday.

Government data showed that Chinese banks lent a record 7.37 trillion yuan in the first half to shore up the economy, exceeding this year's total target of 5 trillion yuan in lending.

However, the CPI, which was down 1.8 percent year on year in July, had declined for seven consecutive months this year, said Deng Yusong, a researcher with the Institute of Market Economy, Development Research Center of the State Council.

"Pork and egg prices often acted as major driving force for inflation in the past, so though the price hikes pose no immediate threat to inflation, the government should be cautious," Lin said.

Source: China Daily