Development And Reform Commission: Five Factors Of Price Rise Need Comprehensive Measures To Control

Xu Kunlin believes that the main reason for this price increase is what five factors?

Xu Kunlin, director of the price and inspection department of the NDRC, said that this price increase is rather complicated. There are 5 main reasons: first, the rising cost factors, including the rising cost of labor, the rising price of resources and land elements, and two of the international import factors, and the rise in commodity prices.

For example, China's high dependence on foreign oil, soybeans and cotton prices will also have an impact on the domestic market.

The third reason is the excess liquidity in the market.

The fourth reason is natural disasters. This year (2010), there are many extreme bad weather. Some of them still have a longer duration. Some varieties, such as early rice, cotton, sugar cane and other crops, still have an impact. Some small agricultural products, such as vegetables, are also more affected.

Another problem is speculation. Speculation is mainly concentrated on cotton, mung bean and garlic.

In general, the causes of price rise are more complicated, there is a cumulative process, and then superimposed each other, combined effect, so the measures to be taken should also be comprehensive.

However, in view of the above five factors, a price expert said today in an interview with reporters that the most fundamental reason is the excess liquidity in the market.

Because inflation is actually a monetary phenomenon.

This is why this round of price rises this year is not like 2004 and 2007, but the rise of individual products, but the rise of more varieties.

What comprehensive measures have been taken by the state to cope with rising prices?

In November 20th, the State Council promulgated the circular on stabilizing the general level of consumer prices to protect the basic livelihood of the masses (referred to as "sixteen countries"), which opened the prelude to this stable price policy.

Xu Kunlin explained that "sixteen countries" are mainly to protect two sides, one is to protect farmers' production enthusiasm, the other is to subsidize low-income groups, and establish a mechanism linking price rise and low income protection level.

In addition, "sixteen countries" have done a lot of work in the intermediate links and circulation links, and eight of them are in this respect.

In particular, the green channel, the notice, decided that since December 1st, all toll roads have waived tolls for vehicles loaded with fresh and fresh agricultural products, and potatoes, sweet potatoes, fresh corn and flowers are included in the green channel catalogue.

Xu Kunlin said today that the green channel policy will be implemented for a long time and will not be adjusted later.

Subsequently, the general office of the State Council set up 6 State Council inspection teams. From November 29th to December 20th, they went to 18 provinces, autonomous regions and municipalities to supervise and inspect the implementation of the State Council's notice.

Today, the reporter learned from the national development and Reform Commission that Peng Sen, deputy director of charge of price work of the NDRC, has gone down to the place to carry out price supervision.

As a matter of fact, after the announcement of "sixteen countries", ministries and commissions to local governments have issued corresponding policies and measures.

It includes strengthening price supervision and inspection, establishing and improving the regulatory mechanism of price regulation, increasing grain, sugar and oil reserves, curbing excessive speculation in agricultural futures trading, and standardizing market order.

In view of malicious hoarding speculation and disrupting market order, the NDRC has stepped up its crackdown and exposed a number of illegal operators, including some state-owned enterprises.

In response to queries raised by experts that "administrative means interfere in excessive prices", Xu pointed out that the main use of this measure is economic means plus legal means, including revising the penalties for price violations, increasing price inspections, and anti monopoly enforcement. Only one administrative means is to control the introduction of government price adjustment projects.