Judging from the data released by the National Bureau of Statistics yesterday (June 9), driven by factors such as rising commodity prices, the increase in PPI in May has expanded.
In order to stabilize the prices of bulk commodities and ease the operating pressure of downstream enterprises, relevant competent authorities have recently intensively spoken out, taking measures to ensure supply and price stabilization, increase supervision, and crack down on hoarding and price-upping behavior.
This is the latest issue of China's bulk commodity price index. It can be seen from the trend chart that this index has shown a downward trend since mid-to-late May.
Chen Xiuzhen, Data Specialist, China International Electronic Commerce Center: In
May, prices fell for two consecutive weeks after reaching a high in the second week. Many ministries and commissions introduced price stabilization measures, which played an important role in stabilizing market expectations.
The prices of a variety of commodities, which hit record highs in early May, have all pulled back.
The market prices of 50 important means of production in the national circulation field monitored by the National Bureau of Statistics show that the prices of 30 products fell in late May compared with mid-May. Among them, the prices of rebar, wire rod, and thermal coal fell by more than 10%. The prices of raw materials such as aluminum have also fallen to varying degrees.
Lian Ping, Chairman of the Chief Economist Forum:
There have been some obvious changes in prices in this area since May. We believe that the next step is to further adjust the relationship between supply and demand in this market and guide the initial balance of supply and demand.
We must deal with the market’s irregular speculation and disrupt market prices. We must strictly manage the market’s supply-demand relationship to a more real supply-demand relationship.
Expert: Limited price transmission and no basis for inflation
Bulk commodities refer to commodities that are bought and sold in large quantities for industrial and agricultural production and consumption. Our common raw materials such as iron ore, coal, copper, and aluminum belong to them. Although these commodities do not directly enter the retail link, they will affect the middle and lower reaches. Manufacturing enterprise costs have an impact.
Recently, global commodity prices have fluctuated greatly. Experts said that commodity prices will not continue to be transmitted to the terminal market, especially the impact on consumers is very limited.
Zhang Liqun, researcher of the Development Research Center of the State Council: As
for the rise in commodities, my personal opinion is that its transmission ability to the terminal is not strong.
At present, the supply and demand relationship in our consumer goods market is roughly balanced. The rise in commodity prices is mostly manifested in the increasing cost pressures of mid- and downstream enterprises, and competition in the market is relatively sufficient.
The energy of rising commodity prices will not continue to be transferred to the terminal market, especially to ordinary consumers. The impact is very limited.
It can also be seen from the published data that although the prices of industrial consumer goods such as refrigerators, televisions, and housing decoration materials have risen due to the impact of rising raw material prices, the increase has been limited.
In May, consumer prices nationwide remained within a reasonable range and operated moderately.
In particular, food prices have played a "stabilizer" role in the price movement.
From a month-on-month perspective, the production of live pigs has continued to recover, and the price of pork, which accounts for a greater weight in the CPI, has continued to decline.
Lian Ping, Chairman of the Chief Economist Forum:
Because our country has an important feature, that is, the overall demand is relatively stable. With the monetary policy maintaining a sound tone, overall liquidity did not appear to be large during this round of response to the epidemic. The scale of release is completely different from the quantitative easing policies implemented in Europe and the United States.
In general, we are still a prudent policy. There is not much money to be put in. There is no basis for inflation in China. The overall operation of China's prices will still be relatively stable.