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Chnanews, Beijing, Dec. 7 – The current price hike is a structural1 problem and it has not developed into any serious inflation at present, said an official from the State Development and Reform Commission (SDRC) recently.
Since the beginning of this year, prices of many goods have risen substantially. In August, September and October, CPI growth rate all exceeded 6%. The ever-increasing CPI figure has aroused great concern from among the general public. With regard to the current price hike, an official from SDRC recently gave an interview to reporters. During the interview, the official analyzed2 the current situation and he also briefed the reporters about what the government would do to counter the problem. In October, food prices rose by 17.6% compared with the same period last year. Of these, the prices of meat and poultry3 (mainly pork) rose by 38.3% compared with last year and the prices of oil products (mainly vegetable cooking oil) rose by 34% compared with last year, the official said. From January to October, CPI grew by 4.4% on average. Of this, food price rose by 11.3% compared with the same period last year and it drove up the CPI figure by 3.8 percentage points (the pork price hike alone pushed up the CPI figure by 1.4 percentage points). In addition, housing price rose by 4.2% compared with the same period last year and it raised the CPI figure by 0.6 percentage point. The prices of other six major categories of commodities remained relatively4 stable and they contributed little to the CPI growth. In light of this, we believe the current price hike is a structural problem and will not lead to an overall inflation, the official noted5.
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