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Xinhua News Agency, Beijing, April 11th Title: Domestic prices keep running smoothly-a perspective of CPI and PPI data in the first quarter

Xinhua News Agency reporter Wei Yukun and Shui Jinchen

Since the beginning of this year, China’s prices have maintained a stable operation. The National Bureau of Statistics released data on the 11th. In the first quarter, the national consumer price index (CPI) rose by 1.3% on average compared with the same period of last year, and the national industrial producer ex-factory price index (PPI) dropped by 1.6% compared with the same period of last year, which continued to be an important "stabilizer" for global prices.

CPI runs in a reasonable range

Stabilizing prices is an important task to do a good job in this year’s economic work. This year’s government work report will set the annual increase in consumer prices at around 3%.

The latest data shows that in the first quarter, CPI continued to operate in a reasonable range, and the monthly increase was lower than the expected target of around 3%.

Dong Lijuan, chief statistician of the Urban Department of the National Bureau of Statistics, said that in January, due to factors such as the Spring Festival effect and the optimization and adjustment of epidemic prevention and control policies, CPI rose by 2.1% year-on-year, an increase of 0.3 percentage points over the previous month; In February, affected by factors such as falling consumer demand after the holiday and sufficient market supply, the year-on-year increase of CPI dropped by 1.1 percentage points compared with the previous month; In March, production and life continued to recover, and the consumer market was fully supplied. CPI rose by 0.7% year-on-year, and the growth rate dropped by 0.3 percentage points from last month.

In China’s CPI "basket" goods, food accounts for a relatively high proportion. Since the beginning of this year, the increase in food prices has continued to fall, from 6.2% in January to 2.4% in March.

From the ring comparison, the price of food changed from 2.8% in January to 1.4% in March. Dong Lijuan analyzed that in March, due to the abundant stock and the decline in consumer demand, pork prices decreased by 4.2% month-on-month; The price of fresh vegetables decreased by 7.2% month-on-month, which was 2.8 percentage points higher than that of last month.

"Vegetable production is greatly affected by meteorological conditions. Adequate sunshine and rising temperature in March are conducive to improving the growth rate of vegetables, resulting in an increase in the output of some vegetables and a downward price. In addition, due to the’ cold spring’ weather in the producing areas, the listing period of vegetables has been postponed, and the prices of lettuce, cauliflower and other varieties have fluctuated frequently. " Zhang Jing, chief analyst of the vegetable market analysis and early warning team of the Ministry of Agriculture and Rural Affairs, said.

The increase in non-food prices has declined. In March, non-food prices rose by 0.3% year-on-year, and the growth rate dropped by 0.3 percentage points from the previous month. In non-food, service prices rose by 0.8% year-on-year, with an increase of 0.2 percentage points over the previous month; The price of industrial consumer goods changed from 0.5% last month to 0.8%.

"Since the beginning of this year, the year-on-year increase of China’s core CPI has been fluctuating in the range of around 1%, which shows that the consumer prices of industrial consumer goods and services in China have remained stable." Wang Likun, an associate researcher at the Institute of Market Economy of the State Council Development Research Center, said.

PPI growth continued to fall.

Affected by factors such as the high comparative base in the same period of last year, the overall price of industrial products in China continued to decline. In the first quarter, PPI decreased by 1.6% year-on-year, including a decrease of 2.5% in March, which was 1.1 percentage points higher than that in the previous month.

From the ring comparison, in January, due to the fluctuation of international crude oil prices and the downward trend of domestic coal prices, the PPI decreased by 0.4% from the previous month. In February, the production recovery of industrial enterprises accelerated, the market demand improved, and the PPI turned flat. In March, due to the accelerated recovery of the domestic economy and the price trend of some commodities in the international market, the PPI remained flat.

Dong Lijuan analyzed that in March, domestic production and market demand continued to improve, key projects were accelerated, and the prices of steel, cement and other industries increased from the previous month. Among them, the prices of ferrous metal smelting and rolling processing industries and cement manufacturing all increased by 1.3% from the previous month. International input factors have driven down the prices of domestic oil and non-ferrous metals-related industries, among which the prices of oil and natural gas mining industry decreased by 0.9% month-on-month, and the prices of oil, coal and other fuel processing industries decreased by 0.4%. Affected by seasonal factors such as rising temperature, the demand for coal has decreased, and the price of coal mining and washing industry has dropped by 1.2%.

"The continuous decline in PPI growth will help improve the profit structure of upstream and downstream industries, ease the cost pressure of manufacturing enterprises in the middle and lower reaches, and stimulate the vitality of micro-subjects." Wang Likun said.

There is a solid foundation for keeping prices running smoothly.

Prices are related to economic operation and affect people’s lives. Experts said that with the gradual improvement of domestic demand, the supporting role for related prices will be enhanced, and the influence of international input factors still exists, and there is some pressure to stabilize prices. However, judging from the trend of the whole year, it still has a solid foundation to maintain the stable operation of prices.

Fu Linghui, a spokesperson for the National Bureau of Statistics, said that China’s grain production has maintained growth, and the grain output has been stable at more than 1.3 trillion Jin for eight consecutive years, and the inventory is relatively abundant; Pork production capacity is at a reasonable level and does not have the conditions for a sharp increase; Energy prices are stable. Last year, China effectively released advanced coal production capacity, and the energy self-sufficiency rate was above 80%. In recent years, the production of oil and natural gas has increased significantly, which is conducive to stabilizing energy prices.

The National Development and Reform Commission has made it clear that we should make overall plans to increase employment and income, and strengthen the supply and price stability of key commodities; The National Energy Administration requires that we do our best to ensure the supply and price stability of natural gas this year to ensure the demand for gas for people’s livelihood; Zunyi, Guizhou, established a unified "white list" system to guarantee supply, strengthened the mechanism of joint guarantee and supply, and ensured a strong and orderly supply of "rice bags" … Recently, all relevant departments and localities have made overall plans to ensure supply and stabilize prices.

Key enterprises have increased efforts to ensure supply and price stability, and have sufficient stocks. For example, Beijing Xinfadi Market will expand the "through train" to cover cities and build a green channel for featured agricultural products to enter Beijing; Meituan buys vegetables on the early-adopter channel of spring vegetables. Toona sinensis, shepherd’s purse, spring bamboo shoots and other fresh spring vegetables are well supplied. Cheap food markets and super discount channels are updated every day, and the prices remain generally stable.

"Looking forward to the whole year, China’s industrial and agricultural products and services are well supplied, production and marketing are smoothly connected, the market order is good, and the overall economic recovery trend will gradually appear in prices. It is expected that the overall price level will generally operate in a reasonable range." Guo Liyan, director of the Comprehensive Situation Research Office of China Macroeconomic Research Institute, said.

Deepening Rural Reform and Promoting Agricultural Modernization —— Interview with Minister of Agriculture Han Changfu

Xinhua News Agency, Beijing, May 31st (Reporter Lin Hui)General Secretary of the Supreme Leader recently hosted a rural reform forum in Xiaogang Village, Fengyang County, Anhui Province and delivered an important speech. Han Changfu, Minister of Agriculture, said in an interview with reporters that the important speech of the General Secretary in Xiaogang Village is a strong signal to strengthen agriculture and attach importance to agriculture, and it is also a heavy hammer to speed up rural reform and development, and it is also a horn to promote agricultural modernization, which further strengthens our confidence and determination to promote rural reform, development and stability.

Deepen the reform of rural land system and collective property rights system.

Q:What key points should be grasped in rural reform at present and in the future?

Han Changfu:Reform is the driving force of agricultural and rural development. In accordance with the spirit of the General Secretary’s important speech and the requirements of the central government’s deployment, we should base ourselves on the present and focus on the long-term, and do a good job in deepening the reform of rural land system and rural collective property rights system, which are the key tasks of laying the foundation and managing the long-term.

The main line of deepening rural reform under the new situation is still to deal with the relationship between farmers and land. With the deepening of industrialization and urbanization, the subject of land contracting right and the subject of management right are separated in fact, which puts forward new requirements for the design of land system. Realizing the separation of contracting right and management right is the direction and major innovation of deepening the reform of rural land system, which is conducive to safeguarding and realizing farmers’ rights and interests and stimulating the vitality of rural development. The premise of "separation of powers" is "implementation of ownership". We are studying the problem of stabilizing rural land in contract relationship and keeping it unchanged for a long time, and put forward specific opinions on the contract period and the way of extending the contract after the expiration of the second round. The basis of "separation of powers" is "stable contracting right". By carrying out registration and certification of contracted land, farmers can really eat "reassurance". The core of "separation of powers" is "freeing management rights", and it is necessary to encourage exploration and innovation, respect farmers’ choices, and develop various forms of agricultural moderate scale operations such as land circulation, land trust and land shareholding.

The reform of rural collective property rights system is a major institutional innovation after the rural household contract responsibility system, which takes care of the long-term, fundamental and overall situation. Promoting this reform is conducive to the formation of an innovative and developed rural property rights system, the improvement of the rural basic management system, the promotion of farmers’ property rights and interests, and the sharing of the fruits of reform and development among the broad masses of farmers. According to the requirements of the central authorities, it is imperative to find out the family background and establish the institutional framework. We should pay close attention to the introduction of reform documents and do a good job in pilot projects, actively explore the quantification of shares to collective members and implement the reform of joint-stock cooperative system, promote the construction of a rural collective property right system with clear ownership, complete power, smooth circulation and strict protection, realize the equal exchange of urban and rural factors, and increase farmers’ property income.

Constructing "Three Systems" and Accelerating Agricultural Modernization

Q:What ideas and measures does the Ministry of Agriculture have in promoting agricultural modernization?

Han Changfu:It is necessary to accelerate agricultural modernization by building a modern agricultural industrial system, production system and management system.

First, we must promote the structural reform of the agricultural supply side and build a modern agricultural industrial system. Guided by market demand, optimize, raise and refine agricultural industry. Since last year, the Ministry of Agriculture has deployed the structural adjustment of planting, animal husbandry and fishery. In the next step, we will intensify our work, pay close attention to the implementation of measures, and make a good combination of agricultural structural adjustment.

The second is to strengthen the support of material technology and equipment and build a modern agricultural production system. Arm agriculture with modern facilities, equipment and technical means, develop green production, and improve the level of improved varieties, mechanization, science and technology, informationization and standardization of agriculture.

The third is to develop moderate scale management and build a modern agricultural management system. Promote the common development of family management, collective management, cooperative management and enterprise management, and improve the level of intensification, scale, organization, socialization and industrialization of agricultural management. The key point is to cultivate new agricultural business entities and new professional farmers, develop agricultural producer services, pay close attention to study and improve the support policies for new business entities, explore various forms of moderate scale operations, and solve the problems of "who will plant the land" and low operating efficiency.

Unswervingly adhere to and improve the basic management system in rural areas

Q:What should we focus on in promoting rural reform and development?

Han Changfu:To maintain rural harmony and stability, the first thing is to stabilize the rural basic management system. Rural basic management system is not only the foundation of rural economic system, but also the basis of rural social governance mechanism, which affects the whole body. To deepen rural reform, the biggest policy is to adhere to and improve the basic rural management system and never waver. To insist on the collective ownership of rural land by farmers, the basic position of family management and the stabilization of land contract relationship, these three "hard levers" must be grasped well. In particular, the reform of rural land system must be carried out prudently and steadily. If you can’t see clearly for a while, don’t rush to move, have some historical patience and don’t rush into it. Land is the survival foundation and emotional dependence of farmers, and it is the "lifeblood" of farmers. Only when the rural land contract relationship is stable can people’s hearts be stable. In the reform of rural land system, we must respect the wishes of farmers, do not engage in coercive orders, and ensure that farmers’ rights and interests are not harmed.

To maintain rural harmony and stability, we must stabilize effective rural policies. The policy is stable, the people are stable, and the countryside is stable. It is necessary to continuously increase and improve the support policies, so that farmers can get more benefits and have more "sense of gain". China’s agricultural and rural economic development in the Twelfth Five-Year Plan has created another best period in history, which proves that a series of policies of the central government to strengthen agriculture, benefit farmers and enrich farmers in recent years are effective and must be adhered to for a long time and constantly improved.

To maintain rural harmony and stability, we must also vigorously promote farmers’ employment and income. Increasing farmers’ employment and income is the biggest livelihood in rural areas. Only when farmers have jobs and "money bags" really swell up can rural harmony and stability be based. It is necessary to support farmers’ employment and entrepreneurship, especially the entrepreneurship of returning migrant workers, as the focus of promoting farmers’ income. Broaden the channels for farmers to increase their income, tap the potential of increasing income within agriculture, vigorously develop new industries and formats such as leisure agriculture and e-commerce, cultivate new income growth points, and promote farmers to increase their income continuously and rapidly.