Inflationary pressures looming

There have been more recent hot topics, such as CPI positive expectations triggered by rising prices, increased inflationary pressures as a result of higher electricity prices, and warnings from experts to anticipate asset bubbles.　　By combining these factors, investors may be able to get some information on how to help with investment decisions. The October CPI fell 0.5% from a year earlier, down 0.3% from last month, a further narrowing of the decline, indicating that it has entered a rising channel. Especially since November, the rain and snow in some areas to increase the price of vegetables, in addition to the cold weather in some areas of coal power production impact, industrial costs will inevitably rise.　　As a result, the November CPI is about to be a positive judge "Unified Lake".　　CPI can be positive, we first put aside, but prices are indeed rising real.　　According to the Ministry of Commerce monitoring, in the week from November 9 to 15th, the market prices of 36 large and medium-sized cities focused on monitoring of edible agricultural products rebounded, up 1% from the previous week; At the same time of rising prices, domestic resource price reform is also steadily advancing.　　November 20, the national consumer electricity sales price per kilowatt hour to improve the average of eight cents, the resident electricity price is not adjusted. Analysts believe that electricity prices in the CPI accounted for a relatively small, the impact on it is very little. From 2003 to 2007, electricity spending accounted for less than 3% per cent of the total household consumption of Chinese households, according to official figures.　　NDRC Price Division director Cao Changqing said that the electricity price adjustment will have a certain impact on high energy-consuming enterprises, but will not lead to a comprehensive price increase in downstream products, the impact on the CPI is limited. It is generally accepted that the rise in electricity prices has little effect on CPI, which has a greater impact on PPI. PPI is the ex-factory price of industrial products, the rise in prices, eventually to pass on to the residents. The adjusted water price and future gas prices to be adjusted will ultimately be borne by the residents.　　The recent rise in commodity prices for international oil and raw materials is bound to push up the eventual rise in consumer prices. However, the shift from rising raw material prices to rising consumer prices is not imminent, and there is plenty of overcapacity in industries such as manufacturing, and domestic food prices are still at a low level, so the risk of inflation in the near future is not in jeopardy.　　So, if inflationary pressures before October are only expected, it is now looming.　　So I agree with experts that even if the CPI is "positive", it does not mean inflation, which is now only in the "inflationary pressure" stage. "Modern people should be accustomed to living in inflation and growing together with asset bubbles". This is Golden Rock, chief economist of National Gold Securities.　　I agree with you deeply. Of course, it is too early to talk about inflation, and the asset bubble is also difficult to escape the "suspicious" suspicion. But is the price-earnings ratio a little higher than the so-called developed markets, or is it a bubble?　　Then our GDP growth rate is a few times of developed countries how come no one said? However, it is still said that the current a-share market has been "inflation", aTime will certainly evolve into asset bubbles. Sun, China's chief economist for Nomura Securities, said the credit boom also brought upward pressure on asset prices. As household wealth increases sharply, the demand for asset diversification should increase. This demand, combined with a strong economic and earnings recovery and low CPI inflation, creates an ideal environment for asset price inflation.　　This is the essence of the problem, and inflation expectations of asset prices have a broader picture of space. So looming inflation is a good time to push up asset prices. Let's call the rise in asset prices a bubble. For investors, it's better to enjoy a bubble than to get a brick. However, investors should remember that "bubbles" must not be eaten.