When setting the main expected target for economic and social development in 2021, the government work report put forward that "consumer price increase of about 3%" was lower than last year's expected target.
This is not only a pragmatic move, but also demonstrates the confidence in stable development to protect people's livelihood.
The price control target of about 3% is in line with the actual situation of my country's price operation.
The Consumer Price Index (CPI) is an important economic indicator that reflects the price changes in the consumer sector within a certain period of time.
Maintaining the overall stability of the CPI is an important goal of macro-control and an important indicator of maintaining a reasonable range of economic operations.
For the whole year of 2020, my country's CPI rose by 2.5% year-on-year, which was significantly lower than the expected target of about 3.5%; the core CPI, excluding food and energy prices, rose by 0.8%, which is within a reasonable range for a moderate increase.
The expected target for this year’s CPI increase is set at about 3%, which is lower than last year’s expected target. It not only takes into account the price lift-over factors and the new price increase factors, but also shows that the Chinese government is confident to control the CPI at a relatively low level. Level.
The price control target of about 3% comes from confidence in the stable development of China's economy.
Behind the price is the relationship between supply and demand.
In 2020, in the face of severe shocks such as the sudden new crown pneumonia epidemic and the deep recession of the world economy, under the strong leadership of the Party Central Committee with Comrade Xi Jinping at the core, my country is the only country in the world's major economies that has achieved positive economic growth.
The sustained and stable recovery of the national economy and the maintenance of continuity, stability and sustainability of macroeconomic policies have laid a solid foundation for the overall price level to remain basically stable.
From the perspective of supply, my country has a solid material foundation, strong economic resilience, and sufficient vitality. The market for industrial and agricultural products is adequately supplied. The total grain output has exceeded 1.3 trillion catties for six consecutive years, and the production capacity of live pigs has basically recovered.
In terms of demand, residents' income has grown steadily, and consumption upgrades have continued to accelerate.
The price control target of around 3% is a vivid manifestation of the ruling philosophy of "people's livelihood-oriented".
Prices are connected to the people's livelihood on one side and the economy on the other. The prices of "rice bags", "vegetable baskets" and "fruit plates" are not stable, which are related to the vital interests of thousands of households and the overall situation of economic and social development. Looking back to 2020, due to the impact of various factors such as the epidemic, food prices, especially pork prices, have risen rapidly at the beginning of the year, and the CPI has risen structurally. All regions and departments have comprehensively strengthened the work of ensuring the supply and stabilization of important livelihood commodities, and accelerated the resumption of work. Production and business resumed, market supply and demand continued to improve, and CPI fell steadily. In 2021, my country will continue to take precise and powerful measures to keep prices within a reasonable range, so that the people will have more sense of happiness and security. (Source: Xiong Li: Economic Daily-China Economic Net)