By Qi Yunlan　

Date: 2005/02/28

Abstract:

2004 witnessed a CPI increase of 3.9%, which was the highest of its kind since 1997. The "tail-perking" factor accounted for 2.2 percentage points while the price rising factor occupied 1.7 percentage points. The hiking price of food and housing contributed to the major factors in CPI lifting. In general, the inflation of CPI was reasonable and controllable. Along with the macro control policy targeting on over heating sectors, as well as the shifting international growth model from strong lifting to a steady growth pattern, the growth rate of Chinese economy will be in a steady downturn in 2005 and CPI increase will also be reduced to some extent with a mild increase of about 3% annually as predicted. It is unlikely to have a general inflation this year.