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CPI dips 0.1% on macro-economic control
(Xinhua)
Updated: 2004-06-27 08:45

The price of capital goods went down by 1.4 percent over April, with prices of rolled steel and non-ferrous metals plunging by 7.6 percent and 3.2 percent, according to statistics of the State Development and Reform Commission.

China's CPI began to rise since January 1 last year following a 14-consecutive month decline, and it jumped by a big margin in September and October.

The CPI in 2003 was 1.2 percent more than the previous year andin the first five months of this year, it rose 3.3 percent, arousing concern over possible high inflation that might lead to interest rate hikes.

Experts said the CPI growth was due to price hikes of grain, edible oil, meat and other daily necessities and services, raw material and energy products.

China has taken a package of moves to prevent the economy from overheating since late last year, including reducing credit loans and land supplies, particularly to such sectors as steel, cement and electrolytic aluminum and real estate.

The bumper summer grain harvest also contributed to the CPI decrease in May.

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