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    It Is Widely Predicted That CPI Will Reach &Nbsp In July, And Inflation Control Is The Key.

    2011/8/10 18:48:00 25

    July CPI Sees Top Inflation Expectations.

    July, issued by the National Bureau of Statistics

    CPI

    The data is 6.5%, a new high in 3 years, and there is no expected "turning point".

    Why is CPI still high after regulation?

    Experts interviewed by Yangcheng Evening News yesterday said that inflation is a long-term issue, and the key is to control inflation expectations.

    The market generally agreed that CPI had begun to peaked in July.


    CPI should now fall from August.


    Data show that July CPI year-on-year

    Rise

    6.5%, food prices are still the most important "pushing hands", with food prices rising by 14.8% and non food prices by 2.9%.

    It is estimated that in the 6.5% increase in July, the price rise factor last year was about 3.3 percentage points, and the new price increase factor is about 3.2 percentage points this year.


    Will inflation continue to go up?

    In this regard, market observers generally believe that July should be the top of the current round of inflation.

    Li Huiyong, chief macroeconomic analyst at Shenyin Wanguo believes that 6.5% of CPI growth is basically consistent with market expectations that inflation will peaked in 6 and July. It is expected that CPI will fall in August and fall significantly after October.

    Zhu Jian, chief macroeconomic analyst at CITIC Securities, said that CPI was slightly higher than expected in July. It is expected to be a high point in the year and will drop to around 6% next month.


    The reasons for the expected high drop in CPI next month are similar.

    Qu Hongbin, chief economist of HSBC China, said the continued tightening monetary policy had reduced the money supply; the recent investment and Manufacturing Purchasing Managers Index showed that domestic demand had cooled; the Chinese government encouraged pork and food production to stabilize.

    Price

    The measures have achieved initial success.


    We should weaken the "higher expectations".


    In order to control inflation, the state has made a series of moves since the second half of last year. Why has there not been a significant decline so far?


    The director of the Department of finance, Zhongshan University, analyzed the reporter of the Yangcheng Evening News that inflation was actually the result of the accumulation of long-term factors. It was very difficult to reduce the difficulty.

    The first is the rapid growth of money supply in China in the past 10 years. At present, the 3 trillion and 200 billion foreign exchange reserve, which has attracted much attention, is embodied in a large number of foundations in China.

    currency

    In response to the international financial crisis, loans increased rapidly in the past few years.

    Secondly, at present, the real estate is regulated and the stock market is not well expected. A large number of currencies turn to the commodity market, and the inflationary pressure is more obvious.

    In addition, the recent increase in supply of agricultural products to increase inflation also requires a production cycle.


    Dong Xiaolin, a professor at Guangdong University of Foreign Studies, said that the degree of internationalization of our economy is getting higher and higher.

    At the same time, macro-control is easier to control bank loans, but private lending is very large at present, and regulation is not easy.

    And there are still many aspects to be perfected in banking system management.

    Therefore, the effect of macroeconomic regulation is difficult to emerge quickly.


    The two experts told the Yangcheng Evening News reporter that, in fact,

    Regulation

    Money is still in play, and money is tightening. As long as CPI is gradually stabilizing, inflation will gradually come down.

    The key is to control inflation expectations and reduce the psychological expectations of "higher adjustment".


     
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