A senior official with the State Statistics Bureau said recently that preventing migrant workers' income from rising too quickly should be taken into consideration as one of the concerns to curb the current inflation.
The official explains that such an act is to ease the pressure by lowering labor cost.
An article carried by the Beijing News has doubts about such an act. Since inflation is the reflection of the value of a currency, the speed of the increase of the currency is higher than that of commodities. Inflation doesn't have too much to do with labor costs.
Also, the article points out that income of migrant workers never "rises too quickly" in China. Actually, the real situation is their income is higher than that of farmers, but compared to the profits enterprises make, their income is still very low.
The newspaper points out that even though curbing inflation is necessary, the government should also prevent the profits of enterprises from rising too much. Currently the labor cost is indeed still very low, said the newspaper.
The article emphasizes that the advantage of the market economy is its effectiveness in integrating all the resources, such as prices, income, interest rate, according to market needs. Preventing migrant workers' income from rising too quickly should not be taken as a measure of curbing inflation.