China News Service, Beijing, May 17 (Reporter Wang Enbo) In the past year, China's industrial producer producer price index (PPI) has continued to increase year-on-year, which has aroused the market's concern about price trends.
Fu Linghui, spokesperson for the National Bureau of Statistics of China, emphasized in Beijing on the 17th that there are foundations and conditions for maintaining stable prices throughout the year.
In April, China’s PPI rose by 6.8% year-on-year, an increase of 2.4 percentage points from the previous month.
Fu Linghui said at a press conference held by the State Council Information Office that day that the year-on-year increase in PPI was due to many factors: one was the low base in the same period last year; the second was the gradual recovery of the domestic economy and the gradual improvement in demand; and the third was the price of international bulk commodities. The impact of the rise on domestic imports.
"From these three aspects, the main reason is that the base figure of the same period last year was low, which had a greater impact on the expansion of the month's increase." Fu Linghui analyzed that in the 2.4% expansion increase, the impact of last year's low base was about 1.5 Percentage points, accounting for 62.5% of 2.4 percentage points.
Affected by the impact of the epidemic, China’s PPI fell by 3.1% year-on-year in April last year, a low level for the whole year.
Fu Linghui further pointed out that from an international perspective, the recent increase in international bulk commodity prices has had a certain impact on the changes in China's PPI.
The rise in international bulk commodity prices is mainly affected by three aspects: the overall recovery of the global economy; international production and supply, especially raw material production and supply and global transportation capacity; and overall global liquidity is abundant.
He judged that, on the whole, due to the gradual recovery of the base last year, the influence of the base in the next stage will reduce the uplifting effect of the expansion of PPI growth.
As for whether the upward pressure of PPI will be passed on to the consumer end, Fu Linghui said bluntly that "there will definitely be transmission", but in general, China's industrial sectors are relatively complete, the industrial chain is relatively long, and the transmission from upstream to downstream is gradually decreasing.
Judging from the situation in recent years, especially in 2016, the transmission of PPI to the consumer price index (CPI) is not so obvious on the whole. The main reason is that the downstream market is very competitive and the market supply capacity is relatively sufficient.
Fu Linghui also mentioned that in the face of the impact of the epidemic last year, China introduced some emergency measures. Judging from this year, these fiscal and monetary policy emergency measures are gradually withdrawing and gradually shifting.
From the perspective of fiscal and monetary policy conditions, it does not support substantial price increases.
"We did not adopt a large-scale fiscal stimulus policy, nor did we implement a large-scale'flooding flood' monetary policy. From this point of view, there is a basis and conditions for the price to remain stable throughout the year." (End)