Market prices are still under control at present and the country
is capable of avoiding severe economic inflation, according to a
report on price indices issued by the National Bureau of
Statistics (NBS) Tuesday.
However, the report warns that some fundamental economic
problems have yet to be resolved, and prevention of escalating
market prices remains a priority task.
Macroeconomic policies put into effect earlier this year are
starting to take effect. Growth in market prices ebbed in May.
The NBS reports that the growth rate of coal output in May was
3.3 percentage points lower than in the previous month, while
growth in steel output lost 9.4 percentage points and that of
autos, 12.1 percentage points.
The NBS also reports that the rise of market prices beginning in
the latter half of last year was only a sign of recovery and based
on a low level in recent years.
Grain prices, for example, are still in a recovery growth
process. The NBS report indicates that the current peak in grain
prices only equals that of 1996.
Rising market price should be attributed to the partial supply
bottleneck that the Chinese economy encounters, price fluctuations
in international markets and the impact of a price surge last
year.
(Xinhua News Agency June 16, 2004)