Root Causes of Continuous Price Decline And Policy

Table  1  Main  Price  Changes  in  January-May  2002  (%)

Month  Jan  Feb  Mar  Apr  May  

Consumer  prices  nationwide  Over  a  year  earlier  -1.0  0.0  -0.8  -1.3-1.1  

Over  preceding  month  0.3  1.1  -1.3  -0.3  

Accumulated  -1.0  -0.5  -0.6  -0.7-0.8  

Producer  prices  of  industrial  products  Over  a  year  earlier  -4.2  -4.2  -4.0  -3.1  

Prices  of  capital  goods  Over  a  year  earlier  -5.0  -4.7  -4.5  -3.4  

Import  prices  of  raw  materials  Over  a  year  earlier  -4.8  -4.6  -4.7  -3.8  

　　(2)  Direct  causes  of  price  declines

　　1.  The  price-pulling  factors  have  weakened.  In  recent  yea

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