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More Work Needed to Keep Inflation Curbed

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)

Local governments Told to Curb Price Hikes
Experts: China May Raise Rates If Inflation Exceeds 5%
Price Hike Control Needed to Avoid Inflation
Consumer Prices Rocket
China to Strengthen Macro-economic Control
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