ABSTRACT
In February 1950, a decisive victory was won in the battle to stabilize market prices, with the state firmly in control. Product prices constantly changed with changes in production costs and supply-demand conditions. In 1962, when the National Price Commission was just established, it was determined to stabilize prices to control inflation. Under the abnormal condition when prices deviate from values, prices conflict with market regulation. Prices for abundant products should be allowed to fall, and prices for scarce products should be allowed to rise. Coordination prices are set to supplant plan prices within and among some regions. Many comrades think that there is conflict between price stability and price adjustment. To protect people's livelihood, the state resolutely stabilized prices for 18 categories of major consumer goods. Coordination prices for many extra-plan products that are produced in small local plants with high costs often exceed plan prices. Prices for new products can be set independently during the trial marketing period.
