Official Upgrades China GDP Growth Estimate

Central bank’s research bureau raised its gross domestic product (GDP) growth estimate for this year Friday to 9.4 percent from 9.2 percent.

The bureau cut its consumer price index (CPI) forecast for 2005 to 1.8 percent from 2 percent, according to a report by Tang Xu, the director of the research bureau, published in the Financial News.
…High international oil prices and a rebound in investment would put pressure on prices to rise. Utilities and resources prices have the potential to rise next year, which would be an important factor in pushing the CPI up, it said.

Changes to the pricing system for resources, such as oil, electricity, water, natural gas and coal, will push prices higher next year, said the report. China reformed the pricing system this year, which involves a gradual loosening of government control over resources prices to allow more market influence.

Xinhua