Gasoline price rise bring pressure of inflation

cctv.com 03-24-2005 10:35

China's recent move in raising gasoline price will bring inflationary pressure, according to analysts at China's State Information Center.

In the past year, the global oil price has increased by 60 percent. Analysts say raising the gasoline price will encourage oil processors to produce more gasoline to meet market demand. But at the same time, the gasoline price hike will affect the prices of other goods, and will eventually increase consumers' daily expenses. It could also lead to a rise in inflation, especially coupled with price rises in service, public goods and raw materials such as steel and metal ore. The State Information Centre also said, with inflationary concerns, the market is anticipating a further adjustment in interest rate.

Editor:Chen Zhuo  Source:CCTV.com