Uncertainty still to haunt China's CPI in 2012, NPC deputy
2012-03-06 10:02:34
China's consumer price index (CPI) is expected to move with high uncertainties in 2012 due to complicated internal causes of inflation and multiple targets set in the country's macroeconomic controlling plan, Gu Shengzu, a deputy of the National People's Congress (NPC), told Xinhua here on Saturday.
Gu, who is also the vice chairman of the China National Democratic Construction Association, attributed the reasons for the currently high prices level to increasing production cost, inflation expectation, mounting domestic demand due to excessive issuance of the currency, imported inflation and speculative transactions on certain commodities.
Gu stressed that the increase of the CPI was mainly boosted by the surges of agricultural and sideline product prices over the past two years.
To ease the high-price pressure, Gu suggested that the government should, on the one hand, increase investment in development of agricultural technologies to accelerate modernization of the agricultural industry, and on the other hand, strengthen the management over the circulation channels of the agricultural products so as to maintain the grain prices and the CPI moving steadily.