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)