Many ministries brewed price controls

After China’s consumer price index (CPI) hit a new high of 4.4% in October, inflation became a major concern in the macro-control field. The reporter learned a few days ago that several major ministries including the National Development and Reform Commission and the Ministry of Industry and Information Technology have brewed price controls. The relevant experts suggested that the NDRC should directly control prices through administrative measures.
As an important part of price regulation, the National Development and Reform Commission is brewing price control measures. Zhou Wangjun, deputy director of the price division of the National Development and Reform Commission, said that the NDRC will take countermeasures to keep price increases within the range that ordinary consumers can afford. The first is the development of production. The emphasis is on the development of agricultural production and the supply of agricultural products such as grain and pigs (22.15, -0.01, -0.05%). The second is to ensure supply through adjustments such as material distribution, import and export. The third is to strengthen market price supervision to prevent hot money speculation. The fourth is to properly subsidize low-income groups so that their living standards do not decline because of rising prices.
How price regulation should be carried out, experts also have many suggestions. Zhang Yongjun, a researcher at the China International Economic Exchange Center, believes that China’s CPI will remain high in November and December. The NDRC's regulation of price should focus on the protection of supply. Only after the balance between supply and demand can prices of various products including agricultural products be obtained. stable.
Wei Fengchun, Chief Macro Analyst of CSC Investment, suggested that the NDRC should directly control commodity and cotton prices through administrative measures and strictly stabilize the price ceiling.
As the ex-factory prices of industrial products in China have risen steadily, the Ministry of Industry and Information Technology has also paid attention.
“The new situation and new problems in the current economic life have emerged. The costs of energy, raw materials, and corporate labor, land use, financing, and energy conservation and emission reduction have all increased. These issues need to be highly valued and seriously addressed,” said the Ministry of Industry and Information Technology.
In response to the impact of energy-saving and emission-reduction targets in some areas in the early part of the year, power cuts have been caused, resulting in soaring prices of some industrial products such as iron and steel due to reduced supply. According to the Ministry of Industry and Information Technology, the relevant departments will issue documents to reduce energy consumption in different regions. The platoon work will be given targeted guidance to stop “one-size-fits-all power cuts.” The market expects that the Ministry of Finance will also take targeted measures. The Goldman Sachs Group report pointed out that although the government may continue to implement a proactive fiscal policy in 2011, the government may control the growth of fiscal expenditure under the inflation pressure.

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