Inflation still within controllable range

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    Over the past few months, meat, eggs, grains and cooking oil have all witnessed a substantial price rise in many parts of the country. The price rise of these foods then affected the prices of other goods. Later, the prices of milk, beef, mutton and instant noodles have also risen. Faced with the current of price rise, Chinese government has begun to take some measures to take it in hand.
    The quick food price rise has brought some negative impacts on people's life and many people have begun to show concern for the possible inflation, the People's Daily Overseas Edition reported.
    The central bank recently released a report about the implementation of China's monetary policies during the second quarter of this year. The report says that at present, as commodity prices rises quickly, China should pay attention to possible inflation. Considering the fact that trade surplus might push up the commodity prices, the report concludes that the current price hike is not an accidental phenomenon. Inflation risk is increasing and four factors might further aggravate the problem: first, the prices of food and meat may not fall in the short run; the pressure for energy price to rise is beefing up; labor costs are increasing; finally, as inflation expectation further rises, this might become a pressure pushing up the prices further.
    In light of the possible global inflation, the report suggests that China should make sure that the price rise in foods will not spread to other commodities. China should prevent an overall price rise.
    Although many goods have witnessed a price rise, on the whole the current price hike is still structural in nature, said Gao Huiqing, an expert at State Information Center. From the general supply and demand situation, such price hike will not trigger an overall price rise. So the current price rise only occurs in some of the goods, not all. The prices of electronic products and clothes, for instance, have remained steady or even declined somewhat, Gao noted.
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