The May Consumer Price Index (CPI) data indicated that price increases starting last year switched from higher prices for agricultural products to higher prices for imported oil. Countries all over the world are facing difficulties due to this. But in light of current global “anti-inflation”, the change also signifies that China has better chances in overcoming inflation in the future.

Experts predict that the U.S. economy will gradually stabilize and the U.S. exchange rate will also rise, thus impacting the Chinese economy in a positive fashion. The sluggish demand in overseas markets will be regenerated and the import commodity prices will lower.

Espousing a common interest is the primary difference in this dialogue as compared to previous conferences. If the interest of all countries involved coincides there will be a greater chance of overcoming global inflation. And ultimately China will also have a way to keep rising prices in check.

The author, Ma Hongman, is a doctorate in economics from Shanghai.

(China.org.cn translated by Yan Xiaoqing, June 19, 2008)