Tuesday, December 14, 2010

Price: China has the colour of curbing inflation material base

China is no serious malignant inflation and current economic operation does not overheat. Regardless of the degree from inflation or lead to inflation, inflationary pressures should be controllable, adjustable range. With all levels of Government to take strong measures in a timely manner, keep prices stable can have full confidence in the

Recently, the domestic price increases momentum evident, from upstream to downstream agricultural means of production and consumer goods, there are many varieties of different levels to rise, on the public's daily life and psychological effects yielded not small. But with all levels of Government to take strong measures in a timely manner, keep prices stable can have full confidence.

Multiple factors within and outside the current prices of complicated situations

First, the internal multiple complex factors pushing up the CPI. The price of food has always been the main CPI higher force, and this year is no exception. From the October price structure, the new price factors, the most important is food prices and housing price: food prices 10.1% higher for the CPI "contribution" was 74%; residential prices 4.9%, "contributions" 16.6% — the two together, the new price factor of 90%.

The main cause of food price include: natural disasters is a multiple, resend, such as the floods of 10 month Hainan to recent food price inflation had a large impact, such as natural disasters caused substantial production of cotton in Xinjiang. Second, the increasing domestic liquidity, hot money hype including some agricultural products, the raw material can be stored. This year, especially in the agricultural field channels for active, mung beans, garlic, cotton, etc. has been speculation that rising prices. Third, some businesses lift prices, to follow the trend of rising prices and Tun goods menguc. China's grain harvest this year, yet the price of agricultural products should not, however, some businesses have the opportunity to forcing.

Second, the external input of inflation. The US dollar continued to depreciate and United States quantitative easing monetary policy, the spread of global liquidity and more serious, international capital speculation on international markets, such as basic commodity bulk petroleum, iron ore, cotton, and other significant price rises and quickly transmitted to internally, especially crude oil prices, as a direct result of agricultural production costs, this year, after the first three quarters. In addition, as part of the national drought, food production, world market prices of some agricultural products on domestic prices.

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