As China tightens monetary policies to rein in liquidity and curb inflation, experts gathering at the Second Global Think Tank Summit Sunday urged the Chinese government to adopt measures to control the long-term market supply and demand to manage inflationary expectations.
While regulating food and property markets that caused price increases, the government should introduce effective measures to guard against the rising long-term inflationary expectation fueled by short-term price hikes, said Lawrence Lau, Chairman of CIC international (Hong Kong) Co., Ltd.
China' s consumer price index (CPI), the main gauge of inflation, accelerated to a 34-month-high of 5.5 percent in May, up from 5.3 percent in April and far above the government's annual target of 4 percent.
Experts expected the CPI to hit 6 percent in June.
To ease soaring prices, the People's Bank of China, or the central bank, has raised interest rates twice this year and hiked the reserve requirement ratio (RRR) for banks six times.
According to Lau, the high CPI was mainly caused by rising costs of farm produce, food and rent. But the country's core inflation, an index excluding price changes in sectors such as farm produce and energy, is rather low at around 1.5 percent.
"But sectors including steel, cement and glass still undergo oversupplies," Lau said.
Xiao Geng, director of Columbia Global Center for East Asia, shared his views and said that the country' s economic conditions don't support a rising inflation.
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Source:Xinhua
Weekly review
While regulating food and property markets that caused price increases, the government should introduce effective measures to guard against the rising long-term inflationary expectation fueled by short-term price hikes, said Lawrence Lau, Chairman of CIC international (Hong Kong) Co., Ltd.
China' s consumer price index (CPI), the main gauge of inflation, accelerated to a 34-month-high of 5.5 percent in May, up from 5.3 percent in April and far above the government's annual target of 4 percent.
Experts expected the CPI to hit 6 percent in June.
To ease soaring prices, the People's Bank of China, or the central bank, has raised interest rates twice this year and hiked the reserve requirement ratio (RRR) for banks six times.
According to Lau, the high CPI was mainly caused by rising costs of farm produce, food and rent. But the country's core inflation, an index excluding price changes in sectors such as farm produce and energy, is rather low at around 1.5 percent.
"But sectors including steel, cement and glass still undergo oversupplies," Lau said.
Xiao Geng, director of Columbia Global Center for East Asia, shared his views and said that the country' s economic conditions don't support a rising inflation.
1 2 3
Source:Xinhua
Weekly review
