Shengzu that the current CPI high is the internal and external attack multiple syndrome

Prevention and control of inflation to "both inside and outside" Our correspondent Ranchu National Bureau of Statistics recently released China's October macroeconomic data, consumer price index rose 4.4% year-on-year, including food prices rose 10.1%, vegetable prices rose 31%, creating a two-year high. In this respect, the NPC Standing Committee, the vice chairman of the DAB, economist Shengzu, said in an interview, due to the international and domestic market, the impact of multiple factors, control inflation may be China's current macro-economic control is facing the biggest problem.　　Under the background of abundant liquidity and inflation expectation, we should strengthen the management of inflation expectation, through "both internal and external, two fists" to effectively alleviate the problem of rising prices. Shengzu that China's resident consumption index is an "internal and external attack" of the multiple-factor syndrome, both in the domestic market cost rise and the impact of the money, but also from the international market input inflation role. First, rising costs are an important driver of rising prices. China has entered the era of high cost, the labor supply gradually from unlimited supply to the local shortage of change, to promote labor costs rise. Since this year, 24 provinces, municipalities and autonomous regions have adjusted the minimum wage standards.　　A survey showed that 97% of the PRD enterprises surveyed said that the cost of labor increased, Guangdong enterprises labor costs generally increased by about 20%. Raw materials into the price is also rising, the cost of raw materials to increase the general growth of 10%, steel, plastic and other major raw materials prices rose more than 20%, resulting in some enterprises "increase not to increase profits" or even "increase income and reduce profits." At the same time, corporate capital costs are soaring. In the first half of 2010, 63% of private companies ' interest rates on bank loans were "above the benchmark rate", according to a survey of China's entrepreneur survey system. At present, China's small and medium-sized enterprises comprehensive financing costs as high as 10%-12%.　　Coupled with the increase in exchange rate risk, as well as land, resource and environment costs rise, multiple factors to jointly promote the cost rise, and then drive the industrial chain related products and services prices. Second, the monetary excess caused the renminbi "in the devaluation of the outside", leading to internal and external liquidity attack, pushing the price of China to rise. In recent years, the central bank has been increasing its money supply as a result of rapid economic growth and a large inflow of foreign currency. The statistics show that the proportion of China's broad money supply to GDP in 2000 was 1.5:1, 2009 was 1.8:1, and rose to 2.6:1 in September this year.　　The speed of money supply is far exceeding GDP growth rate, excess liquidity phenomenon is obvious, further increase domestic inflationary pressure. Finally, the quantitative easing of monetary policy in the US, which leads to the depreciation of the dollar, weakens the attractiveness of dollar assets to short-term international capital, leading to a large influx of short-term international capital into higher-yielding China, exacerbating the liquidity glut in the domestic market and further pushing up asset prices. In addition, due to the high dependence on international commodities such as iron ore and oil, the risk of imported inflation in the international market is increasing. International commodity prices will rise through importsRoute to the domestic, causing domestic commodity prices to increase, exacerbating domestic inflation expectations. Shengzu stressed that the governance of current inflation needs both internal and external, two-pronged, two "fist" attack. On the one hand, China should strengthen the initiative, effectiveness and pertinence of macro-control, deal with external shocks under different circumstances, and relieve the pressure of external input inflation. To make full use of G20 international platform to actively promote the reform of the international monetary system, to achieve global economic rebalancing, to avoid some countries beggar-thy-neighbour caused international financial oscillation.　　We should enhance our country's bargaining power on energy commodities, basic raw materials, agricultural commodities and the right to speak in the international market, and enlarge international influence. We should strictly guard against the financial risks brought by Cross-border capital flows, increase the control over the liquidity environment of speeding capital, innovate the liquidity management tools, and slow down the inflationary pressure caused by hot money inflow.　　To explore how to use the high foreign exchange reserves to support the expansion of enterprises overseas, to realize the "Tibet in the country" to "Tibet to the People", "Tibet in the Enterprise" change, not only to solve the problem of foreign investment financing, but also to reduce the "foreign exchange accounted for" the inflationary pressure. On the other hand, we should take a number of measures to reduce the multiple pressures of domestic price increase and improve the control ability of government to manage inflation. To fully understand the internal relations between monetary policy, exchange rate policy and capital flow, to comprehensively deal with the relationship between bank interest rate adjustment and exchange rate reform, while guiding the reasonable flow of domestic capital, we should also prevent the excess liquidity risk caused by the influx of foreign short-term speculative capital. The reform of RMB exchange rate formation mechanism, income distribution system and resource energy price mechanism should be adopted gradually, and the superposition effect should be slowed down.　　To guide the transformation of enterprises and industrial upgrading, to enhance the ability to absorb high costs, to prevent the sharp increase in production costs caused by excessive prices. At present, we should broaden the channels of private investment, guide a large number of surplus social capital and new credit to the real economy, to alleviate the potential inflationary pressure. The Government should reasonably guide the psychological expectation of inflation, prevent the rising of the price and the indiscriminate charge of inflation, and avoid the economic oscillation and psychological panic caused by the high price. (15A2)