Attention To The Two Sessions: There Will Be No Vicious Inflation This Year.

Despite the January census released by the National Bureau of Statistics

At present, the international commodity prices continue to rise, leading to China's enormous import inflationary pressure.

Will China have hyperinflation?

Wen Jiabao, premier of the State Council, once again reiterated the government's determination to curb rising prices in February 27th. He said he would not allow prices to rise too fast and could not be curbed.

Yao Jingyuan, chief economist of the National Bureau of statistics, attended the 2011 China Anti inflation Investment Forum co sponsored by the China business newspaper and the Boshi fund in March 5th. He also said that there would be no hyperinflation in China in 2011.

Yao Jingyuan: there will be no vicious inflation in 2011.

Yao Jingyuan said that at present, there are two foundations for maintaining price stability in China: the first is that after a continuous seven year harvest, food stocks are abundant, and the main agricultural products (000061), such as pork, vegetable oil, sugar and cotton, have sufficient national reserves. If the market price rises too high, the state can completely reduce the price by using food reserves.

According to the standards set by the United Nations, the safety warning line of grain stocks accounts for 16% of the total consumption. China now has a stock of more than 30% of its total consumption.

Second, the market structure of industrial products is basically balanced and the capacity of the first tier industries is overcapacity.

Price is determined by supply and demand in the market.

Yao Jingyuan said that despite the trend of inflation pressure this year, the task of stabilizing the general price level is very arduous. Because we have two material bases and a working condition, we should believe that China's price rising trend in 2011 will remain basically stable and there will be no hyperinflation.

Development and Reform Commission: ability to maintain price stability

Zhang Ping, director of the national development and Reform Commission, was held at the four session of the eleven National People's Congress on 6 March.

21 agencies predict CPI fall in February

According to the first financial daily, in February 2011, "first financial chief economist research" showed that the chief economist of 21 financial institutions at home and abroad predicted that CPI would drop somewhat in February, with a forecast average of 4.8%, lower than the CPI level announced by the National Bureau of statistics after adjusting the CPI weight in January (4.9%).

At the same time, the scale of new credit in February was significantly reduced, with a forecast value of around 640 billion yuan, equivalent to 60% of the credit scale of January (10400 billion yuan).