By Qi Yunlan　

Date: 2004/11/20

Abstratct:

The year-on-year growth rate of CPI rose continuously from January to September 2004, resulting in an accumulative increase of 4.1%. In the third quarter, the chain index of CPI made an upward turn, and new inflationary factors get stronger. These new factors mainly developed from continuous price hick in housing as well as meat and poultry products. The transmission of the price hick from upstream products to downstream is becoming visible. As the tail-perking factor from previous time period has become weaker, new price hikes are unlikely to experience another drastic rise. The growth rate of CPI in the fourth quarter will drop noticeably and the growth rate for the whole year will stay around 4％. Macro control policies for the next stage will focus on maintaining the overall stability of CPI, keeping adequate control over new inflationary factors, facilitating steady economic operation and a stable life of the people.