The State Council Information Office held a press briefing today (5th) to interpret the relevant situation of the government work report. According to Xiang Dong, deputy director of the Research Office of the State Council, consumer prices rose moderately last year, with an average annual rise of 0.9%, creating a good price environment for economic recovery and improvement of people's livelihood. Under the background of sharp rise in international commodity prices and increasing global inflationary pressure, China's CPI can remain basically stable, which is closely related to abundant market supply and bumper agricultural harvest, especially the good situation of pig production and lower pork prices. At the same time, the work of the State Council to stabilize the price of energy and raw materials has been strengthened, and the conditions for the stable operation of the market have been created for the Party Central Committee.
At present, China's industrial and agricultural production situation is good, the number of live pigs and fertile sows remain at a high level, and the main industrial products and Shenzhen Agricultural Products Group Co.Ltd(000061) supply are guaranteed, which has laid a foundation for the stable operation of CPI this year. However, it should also be noted that the recent high rise in international energy prices has increased the pressure of import and transmission to China; Affected by climate factors, it is not ruled out that the prices of some Shenzhen Agricultural Products Group Co.Ltd(000061) such as vegetables in China have risen periodically. Meanwhile, the impact of 2020 on tail warping in 2021 is - 0.1 percentage points, but the impact of last year's price on this year's tail warping is 0.9 percentage points. It is expected that the year-on-year increase of CPI this year will expand compared with last year, but it will still maintain a moderate upward trend. The government work report sets the CPI increase target of "about 3% this year", fully considers various potential factors affecting prices, leaves some room, and is consistent with the target of last year, which is conducive to stabilizing market expectations.
