Beijing confident to stave off inflation in 2021

China's raw material prices as a whole have so far been in control in 2021 compared to the surges in the world's major economies, and the country has the foundation, confidence and ability to keep domestic prices stable and prevent inflation in every possible way. Prices are rising, the country's National Development and Reform Commission (NDRC) said in a November 21 WeChat message.



China's raw material prices as a whole have so far been in control in 2021 compared to "surges" in the world's major economies, and the country has the foundation, confidence and ability to maintain stability in domestic prices and prevent "inflation." “With prices rising, the country's National Development and Reform Commission (NDRC) shared in a WeChat message on November 21st.

"China will serve as the cornerstone and stabilizer of global commodity prices, and while inflationary pressures will persist around the world for some time, overall commodity prices in China will be kept within reasonable limits," the statement said. CNBC cited the source of the report as China Development and Reform News, a publication under the direct control of the NDRC.

Adverse weather and the ripple effect of rising energy and commodity prices have recently pushed up the prices of some everyday consumer goods, but this is still under control, and China's agricultural harvest, capacity expansion and smooth logistics will allow avoid widespread increases in consumer prices, the report said.

In terms of agricultural products, the NDRC shared statistics on production and stocks of grain, rice and frozen pork to illustrate these points, and in terms of logistics, until snowfall and diffuse COVID-19 outbreaks affected general transport, and vegetables, which are a key factor. CPI rise in October will be transported from South China to North China without any problems, the report said.

In October, China's consumer price index (CPI) rose 1.5% year-on-year, or 0.7% month-on-month, with vegetable prices reported to have risen 15.9% year-on-year, or 16. 6% per month.

By October, China's CPI and Producer Price Index (PPI) showed the lowest growth among the major economies, while the United States, the world's leading economic authority, for example, showed CPI and PPI growth of 6.2% and 8.6% year-on-year, respectively, with The First is at an almost 31-year high and the Second is at its highest level since 2010, the NDRC reported.

For the remainder of 2021 and 2022, “China's PPI was expected to peak in October and decline thereafter, while the CPI will be largely stable thanks to China's effectiveness in containing COVID-19 and a stable and abundant supply of critical consumer goods such as grain, vegetable oil, meat, eggs, dairy products and fresh vegetables, ”the message says.

As reported, in January-October, China's PPI rose 7.3% year-on-year, while the CPI rose just 0.7% year-on-year.