“I believe we can keep prices at a reasonable level through our efforts. As a major leader of the government, I have the responsibility and I have the confidence, too.” He made the remarks while answering a listener’s question during a radio broadcast by China National Radio.

　　Steps taken in the past month, including price controls to curb speculation(抑制投机) and monetary tightening（货币紧缩）, had started to produce results, he said.

　　The government plans to build 10 million units of affordable housing in 2011, up from this year’s target of 5.8 million.

　　China will also increase efforts to curb speculation in the housing market, mainly through monetary policies and stricter use of land, Wen said, without giving details.

　　Wen said the country had a good agricultural supply base which gave the government confidence that it could stabilize prices.

　　In a bid to control inflation, the government has also increased the bank reserve requirement ratio six times and lifted interest rate twice this year, he added.

　　Further, authorities have introduced many measures including cutting fees for transportation of agriculture products and controlling food price rise strictly.

　　The overall price level, especially of major consumer goods, has now begun to drop, Wen said.

　　“The fundamental way to stabilize prices is to achieve a balance of supply and demand, which requires continuous development of agriculture,” said premier, adding that the central government has worked out measures to increase agricultural production.

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