In 2012, We Need To Make Progress While Maintaining Stability: How To Control The Price Pressure

● Li Qingyun, member of the committee: the foundation for stabilizing prices is not yet solid, and we should remain vigilant against price rebound

● Representative Li Xiaobo: accelerate the reform of price formation mechanism to avoid the impact of price fluctuations

● Wang Junzheng, representative: regulation should focus more on ensuring supply to achieve effective connection between production and demand

[Small family with everyone]

Mr. Yang worked as a maintenance worker in an enterprise in Beijing. Last year, his biggest feeling was that the "food basket" had sunk. "In addition to paying rent and buying milk powder for their children, most of the couple's monthly income is spent on meat, eggs and vegetables." Mr. Yang sighed that the price of some dishes has even doubled. It used to be 40 or 50 yuan to buy vegetables in the farmer's market for a week, but now it is enough for three or four days! The family spends five or six hundred yuan more on food every month than a year ago.

Price is the "barometer" of macro-economy and also an indicator of people's livelihood. In 2011, the prices of various commodities interpreted the "roller coaster" market. The CPC Central Committee and the State Council took stabilizing prices as the primary task of macro-control and adopted a series of measures to stabilize prices policy The measures have gradually achieved results: since August last year, the CPI index has gradually dropped, and in January this year, the CPI index dropped to 4.5%.

Entering 2012, we should not only face the pressure of imported inflation and rising factor costs, but also consider the affordability of residents. How to regulate prices has become a hot topic among delegates and members.

　　 Factor costs are rising rigidly, imported inflation pressure is high, and the price stability foundation is not firm

"Although the CPI index is falling back, the foundation for price stability is not solid, and we should remain vigilant against price rebound this year," said Li Qingyun, a professor at the School of Economics of Peking University.

Li Qingyun analyzed that China is the second largest resource importer, with considerable resources raw material Rely on the international market. In the long run, imported inflation pressure is still large. Although China's economy is unlikely to stagnate this year, the uncertainty of world economic recovery is rising. Developed countries have launched a new round of quantitative easing policies, leading to the rise of commodity prices, which may affect China's prices. Domestically, the tight balance between supply and demand of some agricultural products still exists, and the prices of labor, land and other factors and environmental protection costs are on the rise. These factors have increased the pressure of price increases.

　　 Taiyuan Li Xiaobo, Chairman of the Board of Directors of Iron and Steel Group, said that with the continuous advancement of industrialization and urbanization, China has entered a stage of development where the long-term pressure of price rise is prominent. The pressure of rising costs of labor, land, resources, environment and other factors will be long-term rigid.

Wang Junzheng, secretary of Lijiang Municipal Party Committee in Yunnan Province, said that agricultural products played a significant role in this round of price rise. Objectively, China's agricultural foundation is relatively weak, to a certain extent, it still depends on the weather. In recent years, natural disasters and extreme weather events have occurred frequently, bringing many difficulties to production and circulation and intensifying the contradiction between supply and demand. Subjectively, due to the speculation of human factors, market price expectations are easily strengthened and become an important driver of price increases. {page_break}

"We should take a correct view of the price issue. Even if the current CPI falls below 5%, it is not a small pressure on people's livelihood." Li Qingyun said that China has a large number of low-income groups, and the price wave Extremely sensitive. Therefore, we should not take price stability lightly at any time.

　　 There are still multiple favorable factors for stabilizing prices. Economic strength has increased, and there is more room for regulation

"Last year, the economy maintained steady and rapid growth, but prices remained stable, which shows that there are favorable factors in China's economy and society to do a good job in price work." Wang Junzheng said.

"Ensuring supply is the basis for stabilizing prices. At present, the supply capacity of agricultural products in China is constantly improving, and the production capacity of industrial consumer goods exceeds domestic demand. These are the soil for stabilizing prices," Wang Junzheng said.

The downturn in the international economic situation is also conducive to stabilizing prices. Li Xiaobo believes that the periodic decline of international prices will have a "stabilizing effect" on domestic prices. For example, the decline of domestic coal and iron ore prices last year was affected by the international market to varying degrees. "In the context of economic globalization, both government regulators and enterprises should make full use of both domestic and foreign resources and markets, optimize the allocation of resources, and minimize the negative impact of rising prices."

The more the economy develops, the more room for regulation and control. Li Xiaobo said that relying on strong financial and economic strength, the Chinese government can not only increase investment, increase the production and supply of residents' necessities, and support the development of public utilities and public welfare services; It is also possible to increase the living allowance for low-income groups according to the extent of price increases, so as to reduce the pressure of price increases. He believed that during the 12th Five Year Plan period cost As the population dividend gradually ends, the price level will be higher than that of the 11th Five Year Plan, and the society's tolerance for price increases should be improved.

Li Qingyun analyzed that historically, when China's GDP growth rate reached more than 14%, the growth rate of broad money (M2) was only 16% - 17%; From the perspective of the law of economic development, monetary growth of less than 16% can fully support high-speed economic growth. "We can consider gradually liberalizing monopoly industries and mobilizing private capital to ease the problem of insufficient currency circulation without increasing the money supply."

　　 Improve the mechanism to stabilize prices and make more efforts to ensure supply

Wang Junzheng believes that the price control measures in 2012 are different from those in 2011. More efforts should be made to ensure supply, instead of simply "tightening monetary policy" to curb inflation, so as to achieve an effective connection between production and demand.

"Price control should not be just a temporary act, a means of stabilizing prices, nor should it be achieved only through government intervention. Corresponding price formation mechanisms, market price supervision mechanisms, and social security adjustment mechanisms should be developed and improved, and mechanisms should be used to avoid the negative impact of price fluctuations." Li Xiaobo said.

Li Xiaobo suggested that we should accelerate the reform of the price formation mechanism of energy and resources and agricultural products, and standardize the implementation of the hearing mechanism when setting and adjusting the prices of public utilities, public service fees, and natural monopoly commodity prices.

To stabilize prices, we need to focus on mechanism innovation. Wang Junzheng introduced that the consumer price index of Lijiang last year was 4.6%, lower than the provincial and national average, which is inseparable from a series of mechanism innovations in Lijiang: from the reality of building an international boutique tourist resort, explore and establish a tourism price adjustment fund; Integrate the NDRC, price, industry and commerce and other market regulators, and resolutely investigate and deal with price violations; Government subsidies will be adopted to sell vegetables and meat at par and stabilize market prices.

Li Qingyun believed that while regulating prices, the government should also focus on increasing residents' income, improve the social security system, and do everything possible to reduce the impact of rising prices on low-income groups.

"We should constantly improve the response plan to abnormal fluctuations in market prices, and reasonably grasp the timing, pace and strength of government regulation." Wang Junzheng said that we should quickly formulate a comprehensive work plan to reduce circulation costs, and support the construction of vegetable circulation system and agricultural product storage and logistics facilities.

Prices are stable, people are determined, and society is secure. Representatives and members said that although inflation has entered a downward channel, stabilizing the overall price level should continue to be an important task of macro-control in 2012