Consumer prices in China are expected to grow by 4 percent this year, the highest annual increase since 1997.
According to a report released on Monday by the National Development and Reform Commission, the price jump had begun to slow down in October and should continue to fall in the fourth quarter.
The latter trend is the result of stable prices for foodstuffs, meat, egg and milk, the commission said.
Both the possibility of higher average prices for wheat, corn and paddy and that of a price slump are slim.
Meanwhile, the supply and demand for most commodities remains unchanged.
According to a survey of 600 major commodities, conducted by the Ministry of Commerce in the second half of this year, all of them could meet current demand.
Given current fierce competition in the market and technological advances, the prices of major commodities should tend to decline.
In addition, the impact of last year's price hikes is vanishing. The price hike last year mainly occurred in the fourth quarter and it very much affected prices in the first three quarters of this year.
With its influence fading, the fourth quarter should see clear fall in the growth rate of prices in comparison with the first three quarters, reported The Business Times.
But the commission also pointed out that there are still problems in some areas.
A major one is the continued disparity between the supply and demand of coal, power, oil and transport, putting upward pressure on prices.
The other problem is that high energy and raw material prices will push up prices of other products.
"Price hikes this year have made life more expensive," said Beijing resident Liu Jing. "I wish prices would start falling."
"Although the rise in prices of commodities like edible oil and electricity does not seem too great, it does affect daily life once you count it carefully because you need such things every day," she said.
And climbing fuel prices have made Liu and her boyfriend reluctant to buy a car. "We have to wait and choose one that is fuel efficient," she said.
According to a report from the China News Service, the commission will take a series of measures to ease tension in the supply of coal, power, oil and transport.
According to statistics from the first 10 months of the year, the price of oil and oil products rose 10.5 percent over the same period last year, while the price of coal climbed 13.4 percent.
The commission called on departments to boost supplies to meet demand from important regions, sectors and enterprises.
The price of coal and power will be kept stable and outdated industries will be limited so that unreasonable demands for coal, power, oil and transport is lessened.
(China Daily December 8, 2004)
