Inflation is no longer just a forecast

From the "Beans You play", "garlic You ruthless", "Ginger Your army" to the current "sugar high", the spread of agricultural price rally, is actually predicting inflationary pressure growing. Inflation expectations for consumers and investors continued to rise as inflation accelerated in the first three quarters, and many opted to vote by hand to fend off the risk of a decline in the purchasing power of money by reducing cash holdings.　　However, similar to the emergence of sheep-like phenomenon, will inevitably lead to a number of small supply and demand gap in the industry speculative demand, thus triggering a sharp rise in product prices. In the past two years, China's broad monetary total has increased by more than 24 trillion yuan, which is undoubtedly a key part of the current round of inflation transmission mechanism. The excessive supply of money leads to inflated prices of capital goods such as housing and equities, before being transmitted to the price inflation of consumer goods such as food. The recent sharp rise in agricultural prices is a result of multiple factors. In the context of the dollar index plunging, speculative prices have risen in global commodity markets.　　At the same time, the domestic energy-saving emission reduction and the excess capacity of the macro-control departments, such as copper and aluminum, such as the rise in resource prices.　　When inflationary expectations start to trigger spiralling price rises, in managing inflation, policymakers should not allow the market to enlarge the price bubble or simply interrupt the price transmission mechanism through administrative intervention, but should curb the continued growth of the source of inflation and control the money supply to a level that is more conducive to sustainable economic development. (This issue: Shenzhen Special Zone newspaper reporter Xun Yuanjun)