Beijing confident upon preventing inflation in 2021

Posted on 24 November 2021

China's commodities prices in general have been under control so far in 2021, compared with the surges in the major economies globally, and the country is having the foundation, confidence and capability to maintain the stability in the domestic prices and to prevent inflation with all the prices surging, the country's National Development and Reform Commission (NDRC) shared in a WeChat post on November 21.

 

China's commodities prices in general have been under control so far in 2021, compared with the "surges" in the major economies globally, and the country is having the foundation, confidence and capability to maintain the stability in the domestic prices and to prevent "inflation" with all the prices surging, the country's National Development and Reform Commission (NDRC) shared in a WeChat post on November 21.

"China will serve as the cornerstone and stabilizer for the global commodities prices, and while the pressure of 'inflation' will persist globally for some time, China's overall commodities prices will be kept within a reasonable range," the post stated. CNBC quoted the source of the post as China Development and Reform News, the publication under NDRC's direct management.

Adverse weather and the ripple effect of rising energy product and bulk commodities prices led to increases in the prices of some daily life consumer goods recently, but all these are still under control, and China's harvest in agricultural produces, expansion in capacities, and smooth logistics will avoid consumer goods prices from rising in a wide scope, the report stated.

As for agricultural products, NDRC shared statistics in output and stocks of grain, rice, and frozen pork to illustrate the points, and as for logistics, so far, the snowfalls and disperse outbreaks of COVID-19 have not affected the overall transport, and vegetables, a key contributor to the higher CPI in October, will be hauled from South to North China with little disruption, the post shared.

In October, China's Consumer Price Index (CPI) grew 1.5% on year or up 0.7% on month, among which vegetable prices surged 15.9% on year or up 16.6% on month, as reported.

By October, China's CPI and Producer Price Index (PPI) posted the lowest growths among major economies, and the U.S. the world's top economic body, for example, posted 6.2% and 8.6% on-year rises in its CPI an PPI respectively, with the former at its nearly 31-year high and the latter the highest since 2010, NDRC shared.

For the rest of 2021 and 2022, "China's PPI should have hit its peak in October and will ease off afterwards, and the CPI will be largely stable with China's efficiency in containing the COVID-19 and stable and abundant supplies of crucial consumer goods such as grains, cooking oil, meat, eggs, dairy products and fresh vegetables," the post reiterated.

Over January-October, China's PPI gained 7.3% on year while CPI grew merely 0.7% on year, as reported.

Source : Mysteel Global