At the press conference held by the State Council Information Office on September 4th, principals of the State Development and Reform Commission answered questions from reporters on some hot economic issues. Bi Jingquan, deputy director of China's National Development and Reform Commission, pointed out that China's commodity price level is still manageable on the whole.
According to Bi, although China's overall level of consumer prices rose 3.5% in the first seven months this year; it is mainly driven by rising food prices. The general price level is still manageable. There is no serious imbalance in supply and demand that would cause a comprehensive and sustained price peak; and therefore, there is a lack of serious inflation.
Since the last quarter of 2006, especially since May of this year, a sharp rise in food prices has pushed up market prices, according to Bi Jingquan. The consumer price index rose 3.4%, 4.4% and 5.6% in May, June and July respectively- a record high in the last 10 years. From January to July, the average consumer price level rose 3.5% over the same period of last year, of which 2.9 percentage points is driven by higher food prices.
Bi added that, this summer, China reported on the grain harvest. The annual output increased by 4.39 billion jin (1jin=500 g). Autumn grain plants are growing well, and acreage is increasing. A good harvest is expected. Therefore, China's grain is in adequate supply for price stability in the grain market.
By People's Daily Online
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