By Zhang Junkuo　

Date: 2004/05/17

Abstract:?　　

In the first quarter of 2004, the market maintained a strong demand and price index stayed at a high and stable level. Currently, the soaring grain price and CPI are generally considered beneficial and manageable. The macro-economic policy should rest on keeping grain price stable at the high level and avoiding grain prices to go up and down. If the means of production prices shoot up by a big margin and for a too long period of time, this will not only drive up CPI and bring about inflation, but also cause negative impact on the overall economic development in the long run.