National Development And Reform Commission "Inflation On All Sides" Inflation Expectations

After refuting the economist's "stagflation theory of China" for three days, the NDRC reported "zero tolerance" to some media.

The national development and Reform Commission announced 7 days ago that the "Wuhan market milk powder price rise of 10%" is not true.

The national development and Reform Commission website announcement also stressed that the task of managing inflation expectations in China is very heavy. In order to strengthen the management of inflation expectations, we will adopt a "zero tolerance" attitude once we find "false reports and malicious speculation" that may mislead social expectations, trigger mass buying, affect market price stability, and respond immediately to clarify.

The national development and Reform Commission yesterday clarified in the above announcement that after investigation and verification, the 4 day "Changjiang Daily", "Wuhan market milk powder price rise of 10%" is a false report on June.

The announcement said that the national development and Reform Commission immediately instructed the Hubei Provincial Price Bureau to investigate and verify the information after finding the relevant news.

The survey found that although some brands of milk powder prices rose, but the supermarket sales were normal, consumers reflected calm, no looting, hoarding and shortage of goods.

The announcement pointed out that the investigation results of Hubei Price Bureau showed that there were 41 brands of milk powder sold in three large supermarket chains in Wuhan mentioned above, of which 28 were domestic brands and 13 were imported brands.

From May 1st to June 5th, only 6 brands and 42 varieties of milk powder were adjusted, and the brand accounted for 14.6% of the total number of brands. The rising varieties accounted for 4.7% of the total varieties.

Among them, Abbott brand milk powder price rose by 5.54%.

The prices of Wyeth, Dumex and Mead Johnson, which are larger market share, remain stable.

According to the announcement, the current task of managing inflation expectations is very heavy.

The Commission will adopt a "zero tolerance" attitude towards false reports and malicious speculation that may mislead social expectations, trigger mass buying and affect market price stability. Once it is discovered, it will respond immediately and clarify it.

The announcement specifically reiterated the requirement of the relevant state departments that "all kinds of media should not release random information on the output and price of agricultural products at random", calling on the news media to contribute to strengthening the management of inflation expectations.

It is understood that, because the weight of food in CPI statistics accounted for relatively high, early garlic, mung bean and other agricultural products, the problem of rising too fast, so that the public is more worried about food prices.

In May 27th, the Ministry of Commerce and the State Administration for Industry and Commerce issued a circular calling for the local people's governments at all levels to conscientiously strengthen the supervision of the agricultural products market, crack down on speculation and hoarding, and raise prices of agricultural products, and resolutely maintain the normal market order, promote the general stability of the price level and stabilize the people's life.

As early as 4 this month, the national development and Reform Commission website issued a press release, which was related to the heads of relevant departments of the NDRC, refuting individual experts' view that China is facing the risk of stagflation.

The person in charge suggested that experts should conduct in-depth investigation and analysis when making a forecast comment on the economy and price trend, and make a careful judgement.

"It is not desirable for academic researchers or investment consultants to pursue sensationalism only."