Food Prices Rising For Six Months, Inflationary Worries

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According to the National Bureau of Statistics released this month 17, the latest figures show 1 to 6 months, China Food prices Chain were up 0.2%, 1.0%, 1.5%, 0.4%, 0.8%, 0.6%, has been rising for six consecutive months, the cumulative increase of 4.9%.



Price of grain known as 100 King, the price of food and many agricultural products is closely related to rising food prices often lead to inflation of the "leader." 1985, from 1988 to 1989 and from 1993 to 1995 three times more serious inflation, are due to a sharp rise in food prices over the previous year or the year caused. Moreover, with the three more serious inflation, money supply have also emerged in the last year or the year substantial growth. atv graphic kit

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This year, exactly the same time there is both cases. Central to the latest data show that as at 6 at the end of the first half of the total of the additional credit to 7.37 trillion yuan, compared with first half of 2008 jumped 201%, M2 rose 28.46 percent, an increase of 2.72 percentage points higher than the previous month end , record the fastest growth rate; M1 up 24.79 percent, an increase of 6.09 percentage points higher than the previous month end is the end of the last round of inflation, a rapid growth rate.



Really the food prices will trigger a new round of inflation, sparked the "inflation" concerns the arrival.



"From the current situation of China's overall economic perspective, this year's food prices Buzhi Yu cause inflation." Central University of Finance and Economics Professor Zhang Tiegang clear that "China's grain prices are regulated by the state, from our food Price for 6 years of negative growth have been the point of view, the price of food prices showed significant return of the desire and policy-oriented national strategy for care of a city. As the second half of upcoming listing of new grain, the state is vacant inventory, will library, and food and eventually opened to accelerate the pace of the auction food market starving enough, prices will naturally fall, not impetus on inflation. "



Current food stocks are still relatively abundant, still controlled by adjusting the stock price rises. Entered in June, the state increased the frequency of library pay auction, the Treasury's 2008 annual purchasing and storage Rice Three times to put on the market, depress prices.



Moreover, a State Council executive meeting this year has already passed the "National New 1000 billion kilograms of grain production planning (2009-2020)," and the 2020 grain production target raised to 11,000 billion kilograms, compared with the existing production capacity by 1000 jin, the main purpose is to ensure food security.



"Food prices will help to reduce state subsidies to grain farmers, reduce the government's budget deficit this year." Zhang Tiegang further noted that "food prices should be a good thing, now countries have been seeking to resolve large income gap between urban and rural ways. food prices do not go to realize it is difficult to increase the income of farmers. "



CPI in China commodity composition and weights, Food Commodities accounted for 33.6% of the weight determines the basic trend of CPI is running. Historical data show that China's CPI movements and trends in food prices high degree of correlation. The food is the source of food production chain, is the cornerstone of food prices, and therefore the study of food supply and demand and price movements to predict the operational state of CPI has an important reference.



"At present, urban and rural household consumption expenditure, expenditure for food consumption is still accounted for respectively 37.7% and 46.2%, food prices are still the consumer price level is the most influential of the project, the consumption of residents expenditure is still an important influence. grain prices will directly promote other products, especially Alcohol And the rising cost of food production, and indirectly cause other commodity prices. "Bohai Securities analyst Yan Ya Lei said.