GUANGDONG is to push ahead with price reforms in spite of the growing burden of soaring costs after the Government lifted price control. In its latest economic forecast, the State Statistic Bureau admitted that commodity prices were set to rise sharply this year due to the widening gap between supply and demand. According to the semi-official China News Service, Guangdong ordered further steps to be taken to revamp the price system. It aimed to create an environment suitable for the development of a market system. The report said that the provincial Government would no longer increase prices of new items subject to state controls. Prices, fees and charges of ''competitive commodities and services'' will be partially relaxed this year, the report said. It added that the policy of gradually lifting the control over fees and charges of the service sector would persist. The report said the control over commodity prices and service charges at the state, province and city levels had largely been removed. Of the total of 90 kinds of service charges, only 12 were still subject to standardised government control, including air services, railways, post and the telegraph system. The highly centralised price control system had been replaced by the market-oriented system in Guangdong after 14 years of reform, the report added. In the provincial capital of Guangzhou, the report said price controls on 98 per cent of goods had been lifted. Government control over 70 per cent of service fees and charges has also been removed, it said. A State Statistics Bureau official said that the bureau had proposed a series of measures to ensure that the national economy could be developed ''in a reasonable way''. He said the Government should keep the rate of growth of the Gross Domestic Product to about 10 per cent this year. He added that the rate of economic growth would reach 14 per cent if nothing was done to slow it down. The Government earlier set a target growth rate of eight to nine per cent this year. One reason for the high growth and rising commodity prices was the drastic increase of fixed asset investment, which was set to top the 1,000 billion yuan mark (HK$1,356 billion). The State Statistics Bureau said the central Government should try to keep that figure below 900 billion yuan. The Minister of Construction, Mr Hou Jie, this week said the Government had earmarked for 800 billion yuan for fixed asset development this year. The China News Service said Guangzhou residents faced the growing burden of a sharp increase in prices. The fight against inflation had become acute, it said. A report by the city's statistics bureau found that the actual income per head had grown by 32 per cent, while expenses jumped by 34 per cent. An official attributed the rise of commodity prices to the high economic growth and expansion of loans, credits and infrastructure.