Countering price increases and supply problems for Midautumn Festival and National Day

Recently in China there’s been inflation at a higher rate than is normal, with prices of staples like pork and vegetables rising quickest. According to a new article published in Securities Daily, China’s Development and Reform Commission is watching these trends closely and is prepared to counter inflationary measures[1].

The Commission reports that the increase in consumer price index (CPI) has now been below 3% for over four months, and August’s increase in CPI was the lowest in the trailing 17 months. They believe that with the recovery of the pork production and transition from summer to autumn crops, pork and vegetable prices will stabilize. They attributed some of the recent increases to natural disasters like flooding and heavy rains.

The Commission announced that it has prepared four measures it will take to ensure price stability during the two upcoming holidays, Mid-Autumn Festival and National Day. The first measure they are taking is preparing for the necessity of action, such as preemptively preparing orders to go out; the second is that they’re strengthening dynamic monitoring of the prices of important goods, such as pork, chicken, eggs, and vegetables, so they can react quickly; the third is that they’re adjusting their stockpiles in anticipation of changes in consumer demand; and the fourth is that they’re ensuring that the neediest have subsidies so that they aren’t without basic necessities.

[1] Reported on 证券日报 by 苏诗钰 in an article entitled 保价稳供成效继续显现 发改委四举措稳“双节”物价, September 16th, 2020