April CPI data will "break 5" China's future inflationary pressures still exist

According to data released by the National Bureau of Statistics of China on the 11th, in April, consumer prices (CPI) rose by 5.3% year-on-year. From January to April, CPI rose by 5.1% year-on-year. The CPI data once again “breaks 5” during the year, which means that China is still facing greater inflationary pressures. Liu Ligang, director of economic research at Greater Australia in Greater Australia, said that although the CPI rose by 0.1 percentage points from March, China's inflation rate will still have much room for improvement in the future. One of the important reasons is that China's overall economic performance is still at a relatively strong level, and the transmission effect of the industrial producer's ex-factory price (PPI) remains high on CPI. Data show that in January, China's fixed asset investment (excluding farmers) was 627.16 billion yuan, a year-on-year increase of 25.4%, 0.4 percentage points higher than January-March. In the first four months of this year, China’s total import and export value was 1,100.32 billion US dollars, an increase of 28.5% over the same period last year. Li Xuesong, deputy director of the Institute of Quantitative and Technical Economics of the Chinese Academy of Social Sciences, told reporters that until the middle of this year, the impact of the hikes on CPI will be greater. According to the Institute of Quantitative and Technical Economics of the Chinese Academy of Social Sciences, the impact of hikes on CPI in April is about 3.2 percentage points, while in 5, 6, and 3 months, the impact of hikes is expected to be 3.3, 4.0, and 3.5. Percentage or so. "China will face greater price inflation pressures throughout the year, but with the combination of prudent monetary policy and other cooperative policies, the overall inflation situation is still at a manageable level." Li Xuesong said. Analysts believe that factors such as excess liquidity, unstable agricultural foundations, rising wage costs, and rising international commodity prices are driving the CPI to continue to rise. It is not currently ruled out that the labor cycle, the food cycle and the commodity cycle represented by crude oil may form resonance, further increasing the risk of inflation. Jiang Xin, an analyst at the energy division of the business community, said that in the long run, crude oil prices will continue to rise, fluctuating between $100 and $110 a barrel. Although the US dollar has rebounded in the short term, its easing policy will support oil prices. In a month or two, most countries in the United States and the northern hemisphere will enter the peak season of oil consumption. The increase in demand will drive the price of crude oil to rise. The Federal Reserve’s Federal Open Market Committee announced that it will maintain the Fed’s benchmark interest rate unchanged from zero to 0.25%. The Fed will continue to implement the second round of quantitative easing monetary policy and purchase long-term US Treasury bonds by the end of June this year. Federal Reserve Chairman Ben Bernanke said in a high-profile manner that the US dollar will maintain a super-loose monetary policy for "a long time", and this statement has caused the dollar to fall to a three-year low. The United States is not willing to tighten the "water tap", resulting in the continued proliferation of excess global liquidity. The dollar-denominated commodity prices continue to rise, and the input inflationary pressures facing the world, including China, are only increasing. The "hot money" accelerated into the emerging economies, boosting the asset bubble and further increasing inflationary pressures. At the forecast meeting of the Chinese Academy of Social Sciences on the economic situation held in late April, Chen Jiagui, a member of the Chinese Academy of Social Sciences, pointed out that from the perspective of price, many factors causing inflationary pressure have not decreased, and some factors are still strengthening. . It can be inferred that inflationary pressures may continue to increase in the coming months. He believes that to curb inflation risks this year, in addition to increasing the supply of agricultural products and properly tightening liquidity, we must control the speed of economic growth. The current rising inflationary pressure is the result of long-term accumulation, and it takes a long time to curb inflation risks, and it is impossible to do so overnight. Li Xuesong said that comprehensive measures should be taken to curb inflation risks. It is necessary to focus on the use of various tools, especially price-based instruments, under a sound monetary policy, and to improve the forward-looking and effective monetary policy. It is necessary to vigorously develop agricultural production, increase effective supply, improve the temporary collection and storage system, strengthen multi-departmental joint cooperation, strengthen micro-regulation of monopoly charges for vegetable sales terminals, and reduce transaction costs in circulation. Hu Xiaolian, deputy governor of the People's Bank of China, recently published an article saying that curbing inflation is the primary task of current sound monetary policy. It is necessary to continue to improve the RMB exchange rate formation mechanism in accordance with the principles of initiative, controllability and gradualism, increase exchange rate flexibility, and slow down the input inflationary pressure. Liu Ligang believes that the effect of adjusting interest rates and deposit reserve ratio on the overall economy has been weakening. Under this circumstance, the Chinese monetary authorities will need to rely more on exchange rate policies to adjust and tighten the economy and adopt a stronger exchange rate. Flexibility to suppress input inflation. Although the possibility of a one-time sharp appreciation of market rumors is not large, we believe that the Chinese central bank may still adjust the fluctuation range of RMB transactions. As of the end of April, the RMB has appreciated by 1.9% against the US dollar in the first four months of this year, with a monthly appreciation of 0.88% in April. According to the latest data from the China Foreign Exchange Trading Center, the central parity of the RMB against the US dollar was reported at 6.4948 on May 11, and the three consecutive trading days have rewritten the record high since the exchange rate reform. On the view that the appreciation of the renminbi suppresses inflation risks, analysts point out that appreciation will certainly lower the price level of imported goods. However, if a stable and risk-free appreciation expectation is transmitted to the market to attract international capital to accelerate the inflow, it will have a counterproductive effect. In response to the hot money inflows that may be brought about by the appreciation of the renminbi, Professor Song Guoyou of the American Studies Center of Fudan University said that in order to slow down the inflow of hot money, it is necessary to eliminate the market's uniform and stable appreciation expectations and increase the cost of arbitrage funds.  

Gabion Box shall be supplied in various lengths, widths and heights. In order to strengthen the baskets, all the edges of the structure shall be selvedged with Wire of greater diameter.

Application of Gabion Box :

(1)Control and guide of water or flood
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Specifications :

Hexagonal Wire Netting Gabions
Opening (mm)	Wire Diameter(Metal Wire) (mm)	Wire Diameter (PVC Coate)/ Inner/Outside(mm)	Strands
60X80	f2.0-2.8	f2.0/3.0-2.5/3.5	3
80X100	f2.0-3.2	f2.0/3.0-2.8/3.8	3
80X120	f2.0-3.2	f2.0/3.0-2.8/3.8	3
100X120	f2.0-3.4	f2.0/3.0-2.8/3.8	3
100X150	f2.0-3.4	f2.0/3.0-2.8/3.8	3
120X150	f2.0-4.0	f2.0/3.0-3.0/4.0	3

Gabion Box

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