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China'S Inflation Has Become The Focus Of &Nbsp; Focus On CPI Data.

2011/5/11 17:38:00 59

Recently, the topic of China's inflation situation has been put on the table.

Although inflation and inflation seem to be "at a premium", inflation will remain an urgent and important issue for policymakers in the long run of China's sustained economic growth.

On Monday and Tuesday (May 9th and 10), China and the United States mentioned inflation in China's third strategic and economic dialogue. Although China's economy is basically healthy, the high inflation rate remains a challenge.

Wang Qishan, vice premier of the Chinese State Council, said that the consensus of the economic growth mode is the biggest challenge at present. Inflation is the most pressing problem facing China.

Timothy Geithner, the US Treasury Secretary, also expressed similar views on China's inflation situation. He also said that allowing faster appreciation of the renminbi in China would help solve the inflation problem in.

China s Reform and Development Commission

Macro economy

Wang Jian, Secretary General of the academic society, said last Friday (May 6th) that the long-term inflation rate of 5%-10% may be an inevitable prerequisite for the sustained and rapid development of China's economy.

He pointed out that China's future inflation will not become a hyperinflation process, because China's inflation is driven by input, food and wages, and these factors will not lead to over 10% inflation annually.

Zhang Xiaoqiang, deputy director of the NDRC, said on Tuesday that China

salary

Growth helped to boost consumer spending, but in terms of China's inflation situation, there are many factors that contribute to inflation. Obviously, wage growth is not an important part.

China's State Council Development Research Center Deputy Director of the Financial Research Institute, such as Ba Shu song, had previously written that China's price level of about 5% could be extended to the third quarter, and that the tightening period of inflation control policy will be extended to "overtime".

He pointed out that the second quarter will comprehensively use the "three rates", namely the deposit reserve ratio, interest rate and exchange rate and other price and quantity tools, further improve the RMB exchange rate formation mechanism, enhance the RMB exchange rate flexibility, and eliminate the monetary conditions of inflation.

Ba Shu song also said that because the first quarter imports grew faster and imported inflation pressure increased.

RMB rate

In the future, the appreciation rate may also be appropriately increased.

The world's largest bond fund, the 11.01,0.00,0.00% (Asset Management Co), said earlier that China's economic growth is expected to be more moderate than previously expected, while inflation could grow more than most of the PIMCO expects.

To curb inflation pressure, the people's Bank of China (PBOC) raised the deposit reserve ratio fourth percentage points from April 21st to 0.5 percentage points, which is also the tenth increase since last year, so that the deposit rate of large financial institutions reached 20.5% historical highs. In addition, since October last year, the central bank has been raising interest rates for 4 consecutive times.

China's Statistics Bureau will announce the April CPI data at 10:00 on Wednesday, Beijing time. Analysts generally expect that it will remain above 5% in April.

China's CPI grew by 5.4% in March, a 32 month high.