Beijing is expected to witness a consumer price index (CPI) of 103 percent in 2005, higher than this year's level at 101 percent, according to the local reform and development commission.

The commission attributed the expected price increase to the short supply of resources, such as coal, electricity and oil, the pressure of price increase of public services, the possible increase of labor cost and price increase in international market.

Zhang Wanheng, commissary of the commission, said that in 2005,the commission will try to keep a basically stable price level andfurther improve its monitoring and warning system on prices.

On the readjusting of prices for public services, like public transport, gas and heat, the government will choose the best time to do so and consider earnestly the economic development level andthe range residents could endure beforehand, said Zhang Before the change, the government will also work out measures to subsidize the cost hikes for low-income residents, added Zhang.

In 2004, the city's CPI stood at 101 percent, three percentage points lower than the country's average.

Source: Xinhua