Mr. Li Deshui, Director of the National Statistics Bureau called for special attention to three developments in the current economic situation at China Forum on Economic Growth in Suzhou.

The first issue is how to sustain and consolidate the increase of of grain production and farmer's income. The second is the prevention of any rebound of fixed asset investment. And the price curves are the third.

According to Li's analysis, food price hike is 90 percent attributable to the rise of consumers price this year. But it was also true, he reminded the audience, that the purchasing prices of raw materials, fuel and power had all been mounting month by month when compared with the same period of last year. In September, the climb registered at 13.7 percent, 0.8 percent faster than that in the previous month.

He recognized that the brisk domestic demand was one reason. The tightened supply of oil, power, and transportation has not been effectively eased. Resources supply is still a prominent bottleneck in the economy.

On the other hand, the soaring prices of the oil and raw materials on the international market were also partly responsible for the price hike in china. In this case, the upward movement of China's consumer price index in the next year, if there is any, will be driven by costs. Li urged a close watch on this trend.

Talking about the crude oil price on the world market, Li mentioned the geopolitics, individual events, the recovery of the world economy and the rebound of demand as the reasons for the upsurge in the oil price on the world market. But the underlying reason, he stressed, was the international monopoly capital.

The fact, he said, was that the situation where the oil output was comfortably kept above the consumption a little has not changed. A sharp upward movement of crude oil price would to some extent mean the depreciation of US dollar. Then speculation on the crude oil price, he warned, would not only likely sparkle the fourth world's oil crisis, but also undermine USD, which in turn would even trigger a violent vibration in the world's financial system.

By People's Daily Online