China's commodity market saw a steady growth in the first half
year, with balanced demand and supply, a Ministry of Commerce
report said on Friday.
Market prices of production materials rose continuously, while
those of the farm produce underwent ups and downs, said the
report.
Prices of raw materials, such as energy, had a direct impact on
the prices of lower-end products, the report said.
Consumer goods surged rapidly with a narrowing gap between urban
and rural markets, and market prices rose steadily.
Total consumer goods retail sales grew 13.3 percent over the
same period last year to 3.6 trillion yuan, 0.1 of a percentage
point higher than last year's growth rate, said the report.
Household consumer goods rose 1.3 percent, one percentage point
lower than the same period last year.
Exports and imports continued to climb dramatically, with total
value surging 23.4 percent to 795.74 billion yuan.
The report listed three problems that persisted in the market:
overheating investment; rising prices of raw materials; and a lack
of incentive for the public to consume due to soaring expenditure
on housing, healthcare and education, as well as the price
adjustments on public services.
The report forecast total consumer retail sales would rise 13
percent to 7.5 trillion yuan this year and the domestic consumer
goods market would remain buoyant.
(Xinhua News Agency August 5, 2006)