The development direction of China's air mold industry

CPI rose to 8.7% in February, further deepening market concerns. Liang Hong, chief analyst of Goldman Sachs in China, believes that although China's economy has undergone significant structural changes, there are still striking similarities between the current situation and the high inflation in 1987-1988 and 1993-1994. Accelerating the appreciation of the RMB is the best way to solve the problem. Nester Henan polymer suit door

The three inflation rates are similar but different

Liang Hong told our reporter yesterday that these similarities include: 1. The growth of money supply has accelerated significantly; 2. The inflation rate began to rise rapidly soon after the real deposit interest rate became negative; 3. The main measures are the administrative control measures such as credit, investment and price; 4. Interest rates and exchange rates, without exception, have undergone substantial adjustments.

But on the other hand, China's foreign trade situation is no longer what it used to be. The huge current account surplus due to the significant undervaluation of the RMB exchange rate may make the prospect of solving the current inflation problem more optimistic. Liang Hong believes that allowing the RMB to appreciate significantly is the most ideal policy choice, which can not only achieve the purpose of curbing inflation, but also have a very limited inhibitory effect on domestic demand.

The pressure of price rise turns to common consumer goods

Liang Hong believes that in the past, the rise in the prices of non food consumer goods led to inflation in 1987-1988, while food prices were an important driving force for high inflation in 1993-1994. In contrast, an important reason for the current expansion of money supply is the continuous influx of foreign exchange funds. Nester Henan polymer suit door

Inflation pressure is first reflected in the food sector. Liang Hong stressed that due to the rapid increase of residents' income and the strong willingness of banks to lend, the risk of inflation pressure spreading to a wider range of areas is rising.

Liang Hong said the government may soon introduce a new round of monetary tightening measures, such as raising interest rates, adjusting the reserve ratio, allowing the renminbi to appreciate faster and increasing restrictions on loans. In addition, restrictions on the inflow of foreign exchange funds will also be strengthened. "If it fails to work, China may face much greater adjustment pressure than currently predicted, and the impact on industrial production, corporate profits and bank assets will be much more serious."