CLEANER AIR: Workers examine equipment at a PetroChina oil refinery in Yinchuan, capital of northwest China's Ningxia Hui Autonomous Region. The city raised its auto emissions standards on January 3, which reduced allowed sulfur emissions by two thirds (PENG ZHAOZHI)

Inflation in Check

On January 9, the National Bureau of Statistics (NBS) revealed that China's consumer price index (CPI), a major gauge of inflation, had grown 2.5 percent year on year in December, and 2.6 percent for the whole of 2013, well below the government's full-year limit of 3.5 percent.

December's CPI was 0.5 percentage points lower than the previous month, according to the NBS.

December's inflation was 2.5 percent in both cities and rural areas. Food prices, which account for roughly a third of the CPI, rose 4.1 percent in December compared to a year ago, while other products edged up by 1.7 percent.

On a month-to-month basis, December's CPI edged up slightly by 0.3 percent from November. Food prices increased 0.6 percent from November while prices of other products increased 0.1 percent, according to the NBS.

The producer price index (PPI), which measures inflation at the wholesale level, fell 1.4 percent year on year in December. The NBS data showed that annualized PPI for 2013 fell 1.9 percent year on year.

Pension Boost

The State Council will increase the pensions of enterprises' retirees by 10 percent.

The decision was made at the cabinet's executive meeting on January 8. The move will benefit more than 74 million retirees.

The State Council urged government departments to reform their endowment insurance and pension systems.

The meeting also pledged to improve the social assistance system, which helps disadvantaged groups.

The social assistance system, when revamped, will offer financial aid that will improve standards of living for disadvantaged group.

The Central Government has allocated more than 98 billion yuan ($16 billion) to help disadvantaged groups, and has asked that local authorities make sure the money will be given to the needy in a timely manner. It also encouraged nonprofit organizations to take part in the relief effort.

Private Banks

China will set up three to five fully private banks on a trial basis this year in a bid to further open up the banking sector to domestic and foreign capital, according a statement made on January 6 by the China Banking Regulatory Commission (CBRC).

Private capital will be introduced to restructure current banking institutions or set up new ones which bear their own risks, the CBRC said at a work meeting.

Strict procedures and standards will be set for the pilot banks, with demanding set-up criteria, limited licenses, enhanced supervision and a risk handling system.

The CBRC will try to relax the threshold for foreign capital to enter China's banking sector and ease operation requirements for the yuan, while more policies will be issued to support banking reform in the Shanghai free trade zone and the financial reform pilot zone.