Why do prices go up? Can you tell me your opinion?

Why are prices going up? Xiaobian gives his own opinions.

The data information of April consumer price index (CPI) in the United States far exceeds the forecast, which leads the recent hot foreign inflation discussion to a climax again and again, and does some harm to the world capital market, reflecting investors' anxiety about the "turn" of the world monetary policy. As far as China is concerned, the recent price increase has a unique incentive, and simply tightening monetary policy is not necessarily the best choice. Relevant authoritative experts feel that to solve the price increase, we need to start from the supply side in large numbers.

However, the relevant departments have paid more attention to the rising prices. If the external inflationary pressure continues to increase, and the price increase forecast in China continues to increase, monetary policy will not be easy to lack, and it is very likely that it is still in the observation period today. The report on the implementation of the new monetary policy of the central bank is soft when it comes to the rise in prices, and it is clearly stated that monetary policy is stable and the tolerance for the upward trend of price indicators is fully demonstrated.

forbearance is not equal to neglect. In China, the recent price increase has three characteristics: structural, exogenous and phased. It is likely to get twice the result with half the effort simply by tightening monetary policy. Recently, the key to the price increase comes from the price increase of bulk commodities and some raw materials, which is reflected in the price index value, that is, the production and manufacturing prices have increased rapidly, the income price of residents is still relatively stable, the price change has unique structural characteristics, and the transmission in the upper, middle and lower reaches is blocked by consumption intentions.

judging from the inducement of commodity price increase, this round of price increase is harmed to a great extent by the staged "shift" of foreign supply and demand, which is the adverse effect of the remarkable rebound and containment of pneumonia epidemic in COVID-19 overseas. China is the leading exporter of bulk commodities. The price increase of foreign commodities will do harm to the price of industrial supplies in China. In short, today's price upward trend is not comprehensive, the key work pressure comes from the absence of China, and the basic contradiction is not to ask for overheating. Simply tightening monetary policy may not bring significant practical results.

In addition, at present, China's economic foundation is still not solid, residents' income is still constrained, project investment lacks vitality, small and medium-sized enterprises and self-employed individuals are difficult to survive, and the pressure of stable employment is relatively high. In this case, it is even more prudent to stabilize the price increase.