Control the price rise within tolerable limits

Li Ping, Shenzhen Press group Beijing, yesterday, Wangjun, deputy director of the National Development and Reform Commission, said on the understanding of "understanding the situation, properly coping and maintaining the basic stability of the overall price level", and in an interview with the Chinese government network, four causes of this year's price rise too fast, if prices continue to rise on the high side,　　What the NDRC can do is to control the price rise within the reach of urban dwellers and ordinary consumers, and to specify four specific measures. The price of too fast is getting more attention. At present, most of the residents living necessities prices have risen to a certain extent, such as food, vegetables, eggs to edible oil, liquor and other items.　　On the assumption that "prices continue to rise too high", Wangjun said the issue of preventing rising prices is a national priority. He said that because of the 2008 economic crisis, in order to promote economic development, the world has issued a loose monetary policy, the rich liquidity of the rise in prices caused pressure, there must be a release process.　　What the national development and Reform Commission can do is to control the rise in prices within a certain range, within the reach of urban dwellers and ordinary consumers. There are four reasons why prices are rising too fast this year. Wangjun analysis pointed out four kinds of reasons. This includes: first, excessive currency issuance, which is a universal problem worldwide.　　In particular, following the recent quantitative easing of monetary policy in the United States, the international market in recent days, most of the price of goods rose sharply, oil prices reached 87 U.S. dollars, cotton, sugar prices also rose very strong.　　Second, some temporary factors have led to rising prices, such as the rise in vegetable prices this year, mainly because of this year's disastrous weather. Thirdly, in the process of industrialization and urbanization, the labor force, capital and land resources are flowing rapidly to the city, the rural production resources are decreasing, and the rural labor cost of our country is rising this year.　　Xinjiang, such as picking cotton remuneration by kg, picking a kilogram of lint 3 yuan. Four, hot money speculation factors. In the first half of this year, China's mung bean, garlic, cotton and other prices rose, which because of money speculation, cotton rose to 33,000 yuan per ton, Zhengzhou Exchange November 8 cotton futures trading more than 30 billion a day, greatly exceeded the normal range, turnover rate is very high.　　In the first half of China mung bean and garlic also appeared hoarding, malicious speculation enterprises.　　Four measures to deal with high prices on the specific response to excessive prices, Wangjun pointed out that four.　　The first is to develop agricultural production, as long as food, pigs and other agricultural products and basic consumer goods supply can be guaranteed, the response to inflation has a solid foundation.　　The second is to protect the supply, the present material supply is very adequate, through the provision of materials, import and export means of regulation to ensure that the supply of no problems.　　Third, appropriate subsidies should be given to low-income groups, including low-income groups in urban and rural areas, poor students in school families and so on, through financial channels for appropriate subsidies, so that their living standards will not be reduced because of rising prices. Four, is the miningTake some macro measures, such as the use of fiscal policy, strengthen market price supervision, prevent the speculation of hot money, but also through the interpretation of policies to make people have a clear understanding of price rise, rational consumption. Prevent hot money speculation there are three measures he proposed to prevent the phenomenon of hot money speculation can take several aspects, including a not allowed to hype the basic necessities of life, such as oil and eggs. Second, the Government should further improve the system, the hot money can hype the product is certainly for less than the product, such as speculation garlic is due to production, Cotton also exists supply and demand gap.　　Third, establish a special mechanism to prevent the movement of hot money to monitor, strictly prevent its entry into the real economy, especially to enter the residents of the daily necessities market speculation.　　China does not appear stagflation Wangjun said that from the present situation, this year's GDP growth of about 10%, judged next year will not be stagflation. "We haven't had any serious inflation in years. From the present situation, our country does not have the phenomenon of stagflation at all. "He predicted that this year October, November, December prices will remain high, of which the October and November CPI will be higher, December with the end of the disappearance of factors, CPI may be lower, the annual CPI increase may be more than 3%, but only a little bit more,　　Still meet the expected price control targets at the beginning of the year. The national important material reserves full Wangjun said that the characteristics of the rally is not caused by shortages, but the excess liquidity caused.　　At present, the important material reserves fully, the state has accumulated rich experience in regulating prices, to prevent inflation has sufficient material base and means to protect. Wangjun pointed out that the characteristics of the price increase in 2004, 2007, 2008 price increases in the reasons and varieties are different. The 2004 price increase was due to a decline in food production, when the CPI reached 3.9%, 2007 was caused by the shortage of pork, 2008 Rose 5.9%. This time the main feature is mainly food prices, just said the grain, vegetables, edible oil, instant noodles, eggs, and so on, in fact, the root cause is caused by the rising food prices, prices are the basis of hundred prices. But the reasons for vegetable prices are not the same as they are because of the impact of the climate, on the other hand, in the industrialization, urbanization accelerated development process, vegetable planting area decreased. The rise in prices was not caused by shortages but by excess liquidity.