According to latest statistics of the State Development and Reform Commission, the proportions of market-regulated price in China's total retail sales of consumer goods and total retails of means of production have risen. China's price becomes more market-oriented.

According to data released by Price Department of Development and Reform Commission on the 17th, compared with 2004, in 2005 the proportion of market-regulated price in China's total retail sales of consumer goods increased by 0.3 percentage points, the proportion of market-regulated price in the total retails of means of production rose by 4.1 percentage points.

Statistics show that in 2005, in China's total retail sales of consumer goods, the share of government price was 2.7%, 0.3 percentage points lower over the previous year; that of government guidance price was 1.7%, basically the same with that of the previous year; that of market-regulated price was 95.6%, up 0.3 percentage points over the previous year.
"We may conclude from data in recent years, in terms of total retail sales of consumer goods, the share of market-regulated price has been stable above 95%, indicating price of total retail sales of consumer goods has achieved a high degree of market-orientation and stabilized,” according to Price Department of Development and Reform Commission.

In terms of total sales of means of production in 2005, the share of government price was 5.9%, down 3 percentage points over the previous year; that of government guidance price was 2.2%, dropping 1.1 percentage points over the previous year; that of market-regulated price was 91.9%, increasing by 4.1 percentage points over Because prices of iron ore, nonferrous metals and crude oil rose sharply in the international market, prices of steel, copper, zinc and chemical raw materials in the domestic market also rose dramatically, as a result, the share of market-regulated price in total sales of means of production grew substantially.    

In total sales of agricultural by-products in 2005, the share of government price was 1.2%, increasing by 0.2 percentage point over the previous year; that of government guidance price was 1.1%, down 0.1 percentage point over the previous year; that of market-regulated price was 97.7 %, down 0.1 percentage point over the previous year.

"To protect the interests of farmers, in 2005 China adopted minimum purchase price of grain and raised the tobacco purchase price which is developed by the government, slightly increasing the share of government price in total purchase of agricultural by-products," as explained by Price Department of Development and Reform Commission.