Keeping inflation under control key to stabilizing economic growth
China Daily

Citizen selects vegetables at a supermarket in Changchun, Northeast China's Jilin province. (Photo: Xinhua)

China's consumer price index rose 2.1 percent year-on-year in May and 0.2 percent month-on-month, 0.2 percentage points down from the 0.4 percent month-on-month growth in April. The producer price index rose 6.4 percent year-on-year and 0.1 percent month-on-month in May, both a decline from the growth in April, National Bureau of Statistics data indicates.

This is proof that against the backdrop of high global inflation, measures taken by China have helped keep the overall price level within a reasonable range.

Despite a complex and severe external situation, China's inflation level is generally under control. Affected by high international food prices, domestic prices of pork, flour products, grain and edible oil all rose by different degrees. Because of international oil price fluctuations, even gasoline and diesel prices rose, but as China's epidemic prevention and control situation continued to improve in May and the overall consumer market supply remains adequate, commodity prices have begun to fall sharply, driving food prices and the overall CPI downward.

Since March, especially since April, China's employment, industrial production, electricity and freight transport indicators have declined significantly, and the difficulties it is facing are even greater than in 2020. However, China has always put people first, worked hard to ensure smooth and stable industrial and supply chains, and made every effort to keep prices stable.

The specter of "low growth, high inflation" currently hangs over the global economy, and inflationary pressure in emerging economies is also growing under the influence of hyperinflation caused by excessive money printing in the United States and the sharp rise in global energy and food prices caused by the Russia-Ukraine conflict.

Thanks to its dynamic clearing policy against the pandemic, China has further consolidated its position as a "stabilizer" and "powerhouse" of the world economy. China's manufacturing sector plays a pivotal role in the global industrial and supply chains, and its stable prices contribute to stability of prices of global manufacturing products.

Market players are the foundation of China's economy, as also for further consolidating domestic prices. The country should implement policies to rescue market players who are encountering difficulties. As long as it continues to unleash the vitality of market entities, it will create a healthier, safer and more stable environment for its economic development and maintain stable industrial and supply chains and stability of prices.