From Chinese Press

Don't ignore inflation threat

(China Daily)
Updated: 2010-08-25 09:12

Figures released by the National Bureau of Statistics showed the consumer price index for July was 3.3 percent, the highest this year. Given the unstable economic factors, price of commodities could rise further. Therefore, the government should take measures to prevent inflation from rising. Otherwise ordinary people will suffer more, says an article in People's Daily. Excerpts:

Last year, huge amounts of liquid capital flooded the market to overcome the impact of the worst global economic crisis since the Great Depression of the 1930s.

This year, China has been hit by a series of natural disasters, from droughts to heavy snowfall and earthquakes to devastating floods, which threaten to reduce its agricultural production.

This, in turn, will cause the prices of farm and related products to increase.

The sky-high housing prices refuse to come down despite the government's restrictive measures. Though many factors are responsible for exceptionally high housing prices, the government should not discount the role that inflation could have played.

The reform of the income distribution system should be expedited to improve residents' real income and living standards. And all possible measures should be taken to curb inflation and meet the needs of the people.

Besides, laws and regulations should be made more pertinent.

The government should be careful about the monetary policy, too.

Liquidity management should be strengthened to ensure that financial support to economic development is sustainable and a stable and healthy financial system is maintained.

The opinions expressed on this page do not necessarily reflect those of China Daily.