Mr. Xu Lianzhong, a member of China Price Information Center of State Development and Reform Commission, pointed out, when analyzing China's overall economy performance trend, that investment scale in fixed assets in our country was still on the high side, price of means of production surged, pressure on down-stream products was further increased, the foundation of crop production was far from stable, short supply of coal, electricity, oil and transportation was still likely to build up pressure on price hike.

First, continuous price rise by a large margin of up-stream products was likely to build up pressure on the increase of down-stream products price as well as overall price.

Mr. Xu deemed that the pressure from the inevitable price hike of coal and electricity was rather stress; and price hike of these basic products has obviously more influence than that of raw material price, in that the price increase of such basic products would influence the aggregate price from such aspects as life and production. Therefore, with the pass of time, the pressure on the price increase of down-stream products would build up.

Second, the increasingly evident policy-related price adjustment would have more influence on the aggregate price increase.

Mr. Xu deemed that prices of water, electricity, gas, tuition as well as railway transportation, urban public transportation, cable television fees in the public welfare were also under pressure to rise. With the continuous price hike of up-stream products and potential artificial price increase, the cumulated problems caused by price hike pressure would be more evident. Therefore, it was top priority to dissolve the problems related to price in public service. Therefore, more measures on public service price increase in the People's Republic of China would be issued and strengthened in 2005. As a result, service price would increase by a large margin so that the pressure on aggregate price increase in 2005 would be built up.

Third, the speeding increase of employee's wages and income of urban and rural citizens would exert some influence upon price hike.

Fourth, increased international market price increase would exert more pressure upon imported price hike in our country.

In 2005, international market price, especially resource-based products price, would continue its high performance, which was expected to have great influence upon price hike in our country. First, our nation was witnessing high-speed economic development and mainly extensive economic growth, with unit production value based on vast amount of resource consumption. Second, considering our nation's shortage of energy and reliance on foreign nations in energy supply, price hike of energy-based products in international market would result in price rise in our nation.

Fifth, the depreciation of US dollar would increase our import cost and build up more pressure upon price increase in our country. .

Sixth, the chain reaction of real estate price rise upon other products would exert more influence upon the aggregate price hike.