Containing inflation at the root

By Guo Tianyong
0 CommentsPrint E-mail China Daily, December 2, 2010
Adjust font size:

Tightening excess money supply and increasing competitive investment could help lower commodity prices.

The recent rises in commodity prices and looming inflation have become of increasing concern, not just to the Chinese government, but also to many ordinary people.

Since it turned positive at the end of 2009, the country's consumer price index (CPI) has kept rising. Data from the National Bureau of Statistics (NBS) showed that the CPI rose to a 25-month high of 4.4 percent in October, up 0.7 percent on September.

The price hikes of foods and household items have proven to be the main factor pushing up prices. According to the NBS data, food prices in October grew 10.1 percent year-on-year and contributed 74 percent to the month's CPI growth, and the price of consumer commodities increased 4.9 percent from a year earlier, which contributed 16.6 percent to the increased CPI that month. At the same time, the producer price index (PPI) in October increased 5 percent year-on-year, a 0.7 percent rise from September.

Since the start of 2010, prices of some domestic basic foods - from garlic and ginger, to soybeans, apples and sugar - have experienced big rises, sparking a chain reaction in the price of other commodities and aggravating public concerns over inflation. The latest round of inflation pressure has mainly stemmed from the combination of a series of internal and external factors, including monetary and economic ones.

Monetary over-supply has been blamed as the main cause of the looming inflation. Since the start of the global financial crisis, the Chinese government has introduced a series of stimulus packages and offered a comparatively loose monetary environment to ensure economic recovery.

However, despite helping revive the national economy the ever-expanding lending volumes have also caused fluidity excess. By the end of September, the country's M2 volume had reached 69.64 trillion yuan ($10.44 trillion). That means that the country's central bank has over-issued a total of 42 trillion yuan, given that China's gross domestic product (GDP) in the first three quarters was only 26.87 trillion yuan.

Monetary over-supply has undoubtedly fuelled price rises, which, together with speculation by investors, has continuously pushed up the price of properties and consumer commodities.

In addition, trade surplus and the inflow of hot money have also added to China's over fluidity.

1   2   Next  


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: 全黄裸片一29分钟免费真人版| 婷婷国产成人精品视频| 亚洲男人的天堂网站| 精品国产乱码一区二区三区 | 青青青青青草原| 国产高清免费观看| jizz中国jizz欧洲/日韩在线| 日韩亚洲欧美一区| 亚洲一区爱区精品无码| 欧美精品第一页| 产传媒61国产免费| 秋葵视频在线观看在线下载| 嘿咻视频免费网站| 草草影院第一页| 国产四虎免费精品视频| 国产精品福利尤物youwu| 永久久久免费浮力影院| 国产v在线播放| 黄色一级毛片免费看| 国产综合色在线精品| japanesexxxxhd熟睡直播| 性猛交╳xxx乱大交| 中文字幕人成无码免费视频| 月夜直播在线看片www| 人人妻人人澡人人爽精品欧美| 被夫上司强迫的女人在线中文| 国产精品欧美成人| 91九色蝌蚪porny| 女生张开腿给男生捅| 两个人www免费高清视频| 日韩免费观看视频| 九九久久精品无码专区| 男人桶女人视频30分钟看看吧| 国产成人精品免费视频大全五级 | 十七岁免费观看高清| 美女黄色毛片免费看| 国产aaa级一级毛片| 色聚网久久综合| 国产三级自拍视频| 国产精品大片天天看片| 国产福利一区二区|