Even this could not dampen the continued rise of China's share markets, with the benchmark Shanghai index rising 1.4 per cent yesterday to a record close of 5470.07.

China's chief planning agency said it wanted to prevent further rapid rises before the nationwide Golden Week holiday beginning on October 1, when the populace is encouraged to spend and boost consumption.

The Government directly controls the prices of utilities, including water and electricity, and of fuels including petrol and diesel. It also indirectly affects the price of grains through its supervision of supply.

The National Development & Reform Commission said it would encourage corn imports and limit the use of corn by the processing industry, for instance in sweeteners or in ethanol, as part of its anti-inflation drive.

The NDRC, on behalf of six key ministries, said in its statement: "In principle, there will be no new price-adjustment measures before the end of the year. All current rules on goods and service prices controlled by the Government should be strictly implemented, and any unauthorised price rise is strictly forbidden."

The Government has now also instructed regional officials to monitor other prices too, including those of meat and eggs which have seen especially large recent increases. This sends a strong message to all companies operating in China: raising prices, while technically legal, could incur considerable government displeasure.

As China has opened its economy in the past 28 years, it has steadily removed other price controls, leaving products to respond to market fluctuations.

Last Friday, the People's Bank of China raised interest rates by 27 basis points, for the fifth time this year, in response to August's consumer price index rise of an annual 6.5 per cent.

But such attempts to rein in inflation have not been as effective as the Government appears to demand, especially as it enters a crucial period during the run-up to the five-yearly national party congress.

The ruling Communist Party and the Government are preoccupied with this meeting, starting on October 15, which will determine major policies until 2012, and will usher in to senior positions the next leadership team, to take over eventually from President Hu Jintao and Premier Wen Jiabao.

All are anxious not to alienate the public during such a period, always viewed as "sensitive" in China's recent past.

And rapid rises in food prices are viewed as potentially raising the risk of instability, such as by triggering protests including demonstrations.

Pork, the most eaten meat in China, has contributed most to the CPI rise this year, although its price appears to have peaked already.

The biggest losers are likely to be the domestic refining companies, which will no longer be able to pass on soaring world oil prices. This might lead to more oil being exported, possibly creating domestic shortages.

Sinopec, one of China's biggest oil corporations, recorded operating losses in July and August because of the increasing cost of imported crude.

But company official Huang Wensheng told Dow Jones that the new price freeze would not cause the firm to cut its processing volume: "We have to maintain a stable supply of fuel for the market. We cannot sacrifice our customers during the hard times," he said.

The official China Daily editorialised yesterday that it was time to take further measures to dampen speculative demand in the property markets of the big coastal cities, instead of just increasing the supply of land and housing.