Price Increases
涨(zhǎng)
Related buzz words:
Inflation
Increasing prices has been the hottest topic in China during the past year. Prices of almost every daily commodity, from garlic, ginger, sugar to green beans and tea, have been continuously surging, pushing up China's CPI every quarter.
The causes of these price increases are complex. While some experts claim they are common inflation, many others have attributed the increases to the flow of hot money, the excessively loose monetary policy issued by the central bank and of course, market speculation.
However, it is not only daily commodities that have been subject to price increases; houses and bulk commodities, including crude oil and gold, have also witnessed a large price hike.
The Chinese government has taken many measures to rein in prices. Establishing direct links between farmers and supermarkets, exempting vegetable trucks from paying transport fees, requiring cooking oil suppliers not to raise prices and releasing national reserves of grain and cotton, have all been targeted at adding market supply and tackling speculation.
Have they worked?
Prices of some commodities have fallen, but the CPI of the fourth quarter is still predicted to exceed 4 percent.
Related links
State Council Issues 16 Measures to Tackle Inflation
