Society

Chinese Premier Wen Jiabao voiced confidence Sunday that his government can contain rising prices, seeking to reassure the public about inflation a day after the central bank raised interest rates for the second time in 10 weeks.

Speaking to listeners Sunday during a visit to state radio headquarters, Mr. Wen acknowledged that recent price increases have "made life more difficult" for middle- and lower-income Chinese. But, pointing to measures the leadership has taken in recent months, he said: "As it looks now, we are completely able to control the overall level of prices."

The remarks, in a session where Mr. Wen was asked repeatedly about prices, reflect the issue's political sensitivity for Beijing.

Accelerating inflation in recent months has been driven largely by increasing prices for food and housing that disproportionately affect the lower-income people Mr. Wen's government has publicly championed.