CPI continued to drop to increase policy control space
Price-over-year increase of 1.8 percent since February 2010, the 30-month low early large increases in food prices remained relatively stable this month. Due to weather conditions, the international agricultural and domestic prices of agricultural products have some degree of rise, but as the summer grain harvest coming, the prices of domestic agricultural products and the impact will not be great.
Year to date, the price of pork has continued to decline, while corn prices are rising, pig grain than the continued located under the breakeven point, the farmers complain incessantly. Bureau of Statistics data show that pork prices in July fell 18.7%, affecting the overall level of consumer prices down by about 0.71 percentage points.
And food prices, future prices of resource products, the price of labor will become a more important factor affect prices.
Since the beginning of this year, a new round of resource products price reform in quietly changing the price level in the market as a whole. Water tariff adjustments, and will undoubtedly produce a long-term impact on the consumer price. Continuous rise in international oil prices, but also ushered in the domestic oil price hike window.
Commodity prices are still not optimistic. Steady economic growth depends on the stability of commodity prices rise, manufacturers have a strong production will, however, the current economic downturn, whether it is terminal or the manufacturers of raw materials, are in a down channel, especially in industrial enterprises is more common loss , production will lower the operating rate is insufficient. Only when the PPI chain positive, that is the price of raw materials formed on the finished product cost support, the only real commodity prices, the upward momentum.
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