China's consumer prices will remain mild in the second half of this year, despite ticking up in July, read an article in the
Economic Daily.
According to the National Bureau of Statistics, the consumer price index (CPI), a main gauge of inflation, rose 2.8 percent in July compared with last year, up from an increase of 2.7 percent registered in June. This is the fifth consecutive month of over 2-percent CPI, which has sparked online worry over inflation.
Indeed, the CPI increase currently is still under 3 percent, the goal set by the central government for the year.
This year’s CPI increase derives mainly from higher food prices. In the first half of 2019, the prices of fresh fruits, vegetables and meat rose by 16.1 percent, 9.2 percent and 6.6 percent respectively.
Because of extreme weather, the output of fruits and vegetables has declined, resulting in tight supply in the fruit and vegetable market. Prices are expected to return to a more reasonable range, keeping the inflation stable for the whole year.
There are a number of factors that can curb consumer prices from spiraling. For instance, the summer grain harvest to a certain degree can ensure sufficient supply of agricultural products. And industrial production is stable. The overall supply of industrial consumer goods exceeds overall demand, and the steady monetary policy is conducive to maintaining total price levels. Since the beginning of August, prices of some fruits already has declined. Egg supply is rising and there is more vegetable supply than the same period of last year.
The country should further strengthen price monitoring analysis and early warning, especially in important people's livelihood commodity prices and further improve market supply.
Old Version
