The Guangdong Provincial Price Bureau informs the food price increases that low-income groups can receive subsidies

The Guangdong Provincial Price Bureau issued a notification yesterday that when food prices rose more than 7% for three consecutive months, low-income groups would receive subsidies, and the subsidy standards would be set by the municipalities.

Temporary CPI as Reference Data Recently, several departments in Guangdong Province jointly issued a notice requiring all levels of the province to list and establish a mechanism for the linkage between temporary price subsidies and price increase for low-income people as soon as possible. When the basic consumer price continues to rise significantly, local governments must start a subsidy linkage mechanism on the market in a timely manner and issue temporary price subsidies to low-income people. The subsidy targets include urban and rural low-income households, special care recipients, and rural households with five guarantees. The income of the people can be properly expanded according to the actual situation.

According to the relevant person in charge of the Provincial Price Bureau, the country is currently studying the preparation of a basic consumer price index for residents, which will be used as the main basis for initiating the subsidy linkage mechanism. However, at present, the Consumer Price Index (CPI) will be used as the reference data for the start-up of the subsidy linkage mechanism.

The subsidy standards issued a notice in various localities that localities can further supplement and refine the start-up conditions according to the actual situation, especially vegetables, pork, edible oil, and liquefied petroleum gas, which account for the daily necessities that have a large proportion of the daily consumption expenditure of low-income people. The price, as an important reference condition for initiating the subsidy linkage mechanism, when the price rises more, the subsidy linkage mechanism should be activated in a timely manner, and all localities should be encouraged to appropriately relax the starting conditions according to the actual situation.

The specific subsidy standard for the temporary price shall be determined by reference to the local minimum living allowance at the local level. The funds required for starting the subsidy linkage mechanism have been established at the prefecture level of the price adjustment fund, and are arranged from the price adjustment fund; the prefecture level without a price adjustment fund is listed and arranged in local financial funds.

The subsidy linkage mechanism started in the following situations: ● The year-on-year increase of CPI exceeded 3% for 3 consecutive months (including 3%, the same below);

● The year-on-year increase in food prices exceeded 7% for 3 consecutive months;

● The year-on-year increase in the prices of water, electricity and fuel in residential categories exceeded 7% for three consecutive months.

Note: After the subsidy linkage mechanism starts, if the foregoing circumstance disappears for 3 months, the implementation will be suspended; if the aforementioned regulations increase below the critical point in a few months (ie, the CPI increase is lower than 3% year-on-year; the year-on-year increase in food prices is below 7) %; water, electricity, and fuel prices rose less than 7% year-on-year, and the monthly subsidy was suspended.