Higher inflation

0 CommentsPrint E-mail China Daily, November 12, 2010
Adjust font size:

The surge in China's consumer price index (CPI) to a 25-month high in October should bring an end to premature optimism that the country would effectively ease inflationary pressure.

More importantly, it should also add to the resolve of Chinese policymakers to make greater efforts to fight inflation.

As China's economic growth has already slowed from 11.9 percent in the first three months of this year to 10.3 percent in the second quarter, there was a consensus among Chinese policymakers that inflationary expectations would diminish in coming months as a further fall in Chinese growth would considerably ease price pressures.

But the acceleration of consumer inflation in the third quarter, in spite of the fact that economic growth further slowed to 9.6 percent, has since given rise to public suspicion that the government will not manage to keep inflation below the official target of 3 percent for the whole year.

Now, a sharp increase of consumer inflation from 3.6 percent in September to 4.4 percent last month leaves Chinese policymakers no choice but to significantly increase efforts to cool inflation. Otherwise, rocketing prices will fuel dangerous asset bubbles and worsen the wealth disparity between the poor and the rich.

Domestically, a double-digit jump in the cost of food has been blamed as the driving force behind the October surge in consumer inflation.

On average, the price of food accounts for one third of the basket of goods used to calculate the country's CPI. That means, for low and middle-income families, they spend a proportionately larger share of their income on food. Hence, poor people will bear the brunt of food-led inflation.

If the country is to pursue inclusive growth and narrow the wealth gap, policymakers must do more to arrest food-led inflation as soon as possible.

Internationally, the new round of quantitative easing launched by the United States has already sent commodity prices through the roof, stoking inflation in many fast-growing developing countries.

It is far from clear if the international community will come up with measures to stop the world's largest economy from printing too much money in an untested bid to reflate its way out of recession.

The Chinese authorities certainly should try to prevent a flood of international capital inflating domestic consumer and asset prices.

It is reassuring that, on Wednesday, after raising its benchmark interest rate for the first time in nearly three years last month, the People's Bank of China has ordered commercial lenders to set aside more reserves for a fourth time this year to tighten liquidity.

The sharp rise in the value of the Chinese currency against the US dollar on Thursday also indicates that Chinese policymakers are ready to fight inflation with all necessary tools.

In face of persistent pressures on prices, all such efforts, if not more, are badly needed.

Print E-mail Bookmark and Share

Go to Forum >>0 Comments

No comments.

Add your comments...

  • User Name Required
  • Your Comment
  • Racist, abusive and off-topic comments may be removed by the moderator.
Send your storiesGet more from China.org.cnMobileRSSNewsletter
主站蜘蛛池模板: 欧美性猛交xxxx乱大交丰满| 美雪艾莉丝番号| 国产精品视频你懂的| videos性欧美| 成年人网站免费视频| 久久伊人色综合| 最近免费中文字幕大全| 亚洲欧美人成网站在线观看看| 看**一级**多毛片| 午夜三级限制福利电影在线看| 菠萝蜜视频在线观看入口| 国产成人av在线影院| 亚洲乱码一二三四区乱码| 国产精品自产拍在线观看花钱看 | 一级做一级爱a做片性视频视频 | 免费一级毛片完整版在线看| 美女扒开尿口给男人看的让| 国产乡下三级全黄三级| 黄毛片一级毛片| 国产成人精选视频69堂| 色偷偷女男人的天堂亚洲网| 国产精品国产免费无码专区不卡| 97久久久久人妻精品专区| 在线观看国产小屁孩cao大人| ts人妖系列在线专区| 好男人好视频手机在线| 一级做a爰片性色毛片新版的| 成人爽爽激情在线观看| 中文字幕亚洲不卡在线亚瑟| 日本a∨在线播放高清| 久久人人爽人人人人爽av| 日韩激情电影在线观看| 乱妇乱女熟妇熟女网站| 欧日韩不卡在线视频| 亚洲av日韩精品久久久久久久| 欧美人与物videos另| 亚洲国产日产无码精品| 欧美人与动性行为另类| 亚洲另类小说网| 欧美一级久久久久久久大| 亚洲人成伊人成综合网久久久|