EDITORS PLEASE NOTE THIS EDIT CONTAINS CONVERTED 4:3 MATERIAL Inflation? China's got it under control. That's if you believe the government's Consumer Price Index, which shows prices rising at around 2 percent a year. But efforts to control price growth have some unintended consequences. Rush hour is a tough time to find taxis anywhere in the world, but China's capital has become infamous for it. (SOUNDBITE) (English) REUTERS TV CORRESPONDENT, JANE LANHEE LEE, SAYING: "We finally found all the Beijing taxis, they're here, hundreds of them parked on the outskirts of the city." So why aren't they driving? Many blame low fares, which are set by the government. (SOUNDBITE) (Mandarin) BEIJING TAXI DRIVER, SAYING: "It's obvious, you can't make money driving a taxi. No one wants to do it. Many years ago when gas was 4 yuan the flag fare was 10 yuan. Now gas is 8 yuan and the flag fare is still 10 yuan." The Beijing taxi shortage has been so bad, investment banks like Macquarie have written reports about it, calling for price reforms The government office that sets fares says it does so with careful consideration, and points out that drivers can also collect fuel surcharges. It's not only taxi fares that officials try to keep in check. China also controls the prices of key resources, leading to shortages and even blackouts as some power stations choose to cut supply rather than lose money operating. Inflation is one of the government's biggest worries, having been linked to unrest in the past. Economics professor Hu Xingdou believes the real current rate of inflation is around 5 percent. (SOUNDBITE) (Mandarin) ECONOMICS PROFESSOR, BEIJING INSTITUTE OF TECHNOLOGY, HU XINGDOU, SAYING: "Overly low prices bring about waste. Of course, reform can't happen in one go. It should be a gradual process. Many resources will have to be priced higher. Of course, this will bring the risk of inflation." Beijing doesn't seem ready to act just yet. It recently cut the fuel surcharges to two yuan from three. Good luck finding a taxi in the cold.