Sustaining food security has always been one of the most important goals for governments at all levels in China. Since the second half of 2006, prices of agricultural commodities on the international and domestic markets kept soaring, which had negative effect on some households, especially the low-income households in China. Food prices registered relatively slow increase in 2005 (by 2.9 percent) and 2006 (by 2.3 percent), before suddenly shooting up to an annual jump of 12.3 percent in 2007.