CPI Photo: VCG

China's consumer price index (CPI), the main gauge of inflation, is expected to maintain moderate expansion in 2022 and the growth of the producer price index (PPI), or factory-gate prices, will gradually fall, according to an article published by China's top economic planner on Sunday.

The article, which was posted on the WeChat account of the National Development and Reform Commission (NDRC), said that China's inflationary pressure is expected to weaken due to the country's economic recovery and development, as well as sufficient supplies of coal, oil and staple foods, including vegetables and meat, despite global high inflation.

In 2021, many countries faced downside risks, including renewed COVID-19 outbreaks, the possibility of unanchored inflation expectations, and rising debt levels. Inflation in many economies across the world hit record highs, with the CPI in the US rising 4.7 percent throughout the year and reaching 7 percent in December, the highest in nearly 40 years. Its PPI increased 6.9 percent last year.

Inflation in some emerging economies, including India and Brazil, also saw multi-year highs in 2021. Turkey's CPI and PPI in December soared to 36 percent and 80 percent, respectively.

Amid high inflation pressure around the world, China has made a contribution to balancing supply and demand in international markets and stabilizing global prices, the NDRC said, noting that the country's stable production has strongly supported the smooth operation of global industry and supply chains thanks to the government's effective efforts to control the pandemic.

Moreover, the country has insisted on implementing a prudent monetary policy. In response to irrational price rises of commodities like coal, iron ore and steel, the government ramped up efforts to regulate supply and demand, and it strengthened market supervision. These efforts have effectively curbed increases of global prices, the NDRC said.

In 2021, China's CPI rose by a moderate 0.9 percent year-on-year, and the growth of the PPI stood at 8.1 percent, which together provide a solid base for China's steady economic growth amid soaring commodity prices and the impact of sporadic flare-ups of COVID-19 across the world. China has become a stabilizer for the global economy facing downward pressure, experts said.

According to data released by the National Bureau of Statistics, China's GDP expanded 8.1 percent year-on-year in 2021, which was well above the government target of "above 6 percent" set at the beginning of 2021. 

Global Times