3%： Stabilizing prices means stabilizing people’s livelihood

Xinhua News Agency, Beijing, March 5th Title: 3%: Stabilizing prices means stabilizing people’s livelihood.

Xinhua News Agency reporter Wei Yukun

Prices are related to economic operation and affect people’s lives. This year’s government work report sets the annual consumer price increase at around 3%. This expected goal fully considers various potential factors affecting prices, leaving some room, which is conducive to stabilizing market expectations and enhancing the determination and confidence in doing a good job in ensuring supply and stabilizing prices.

Compared with the situation of high global inflation, the price increase is set at around 3%, which is particularly rare. The price increase is controlled at a relatively stable level for a long time, leaving enough room for macro-policy regulation and control, which can effectively support the economic operation to maintain a reasonable range. Since last year, China has accurately grasped the policy to ensure supply and stabilize prices, and prices have always been running in a reasonable range, which has played an important role in stabilizing the economic market. In January this year, domestic prices maintained a stable operation, and CPI rose by 2.1% year-on-year, significantly lower than the increase of 6.4% in the United States and 10.1% in the United Kingdom, and continued to be an important "stabilizer" for global prices.

Affected by imported inflation, hikes and other factors, the pressure of rising prices still exists this year, but from the perspective of supply fundamentals, China’s prices have a solid foundation for maintaining a stable operation. The continuous bumper harvest of grain production, the project of improving soybean oil production capacity started well, the pig production capacity was reasonable and abundant, the vegetable production in the field area and aquatic products increased steadily, the industrial and service markets were adequately supplied, the basic energy supply was strong, and the system of ensuring supply and stabilizing prices was further improved. Since the beginning of the year, all localities and departments have actively implemented the central government’s arrangements and made overall plans to ensure stable supply and prices. For example, the Ministry of Agriculture and Rural Affairs launched a large-scale training on field management techniques in spring to ensure stable production and increase production of grain and oil; Ningxia, Anhui and other places have strengthened market price monitoring, analysis and early warning, etc., to ensure that the supply of important people’s livelihood commodities is sufficient, the reserves are substantial, and the market prices are stable and orderly.

Under the condition of market economy, prices are greatly influenced by the relationship between supply and demand, and sometimes there will be some fluctuations. China has a strong economic resilience, a large market space and a rich policy toolbox. It insists on implementing a prudent monetary policy, scientifically grasps the strength, rhythm and key points of the policy, and does not engage in "flood irrigation". It has a relatively complete control system, rich practical experience and the ability to effectively cope with abnormal market price fluctuations.

The price increase of 3% is not simple. Adhere to the people-centered, improve the ability and level of price control, ensure price stability with stable supply, and promote supply stability with stable price. We are fully qualified, capable and confident to maintain overall price stability.