BEIJING, Sept. 4 /Xinhua-PRNewswire/ -- The CPI of August is forecasted to fall back to 6%, which is the lowest rise this year. However, a report from the State Statistics Bureau analyzed that China still has to pay attention to these prices, because lots of difficulties have arisen in this price fallback, bringing a lot of pressure for the rise of the CPI.
(Logo: http://www.newscom.com/cgi-bin/prnh/20080605/CNTH022LOGO )
An expert points out that although the growth rate is slower than before, it doesn't mean the pressure of inflation is less. The rising price of the raw material has affected downstream products and enterprises' development.
With a good harvest of summer crops ( http://www.tootoo.com/buy-crops/ ), the production situation of major agricultural products ( http://www.tootoo.com/w-Agriculture/ ) has experienced good development. This creates a favorable condition to restrain inflation. The report says the difficulties in the fallback are caused by the increasing price of the means of agricultural production. The price of agricultural products will be higher in the future because the rising price of petroleum will bring along an increasing price of the means of agricultural production, such as chemical fertilizers ( http://news.tootoo.com/Agriculture/Agrochemicals_Pesticides/ ). It also says the fallback of agricultural products' prices will be hard to realize because it is affected by many factors.
Separately, agriculture information in Tootoo.com ( http://www.tootoo.com/ ) demonstrates that although the consumption market is still in a situation of supply exceeding demand. The increasing price of the means of production will raise production costs and increase pressure on rising prices. In order to relieve the pressure on increasing prices, the government should first realize a balance in pricing. It also should increase the supply and production of major agricultural products.
