Prices have already appeared signs of inflation fell-icesword

Prices have already appeared signs of inflation fell yesterday, the National Bureau of Statistics announced one of the most important leading indicators in 2016 October, China Manufacturing Purchasing Managers Index (PMI) was 51.2%, a record high since July 2014, 0.8 percentage points higher than in September increased significantly at the critical point of the. Media reports, the main production data prices and low base effect, the market is generally expected, in November 9th announced the PPI data in October, year on year growth is expected to continue to rise to about 1%. This year, PPI has maintained an upward trend, September PPI ended the continuous 54 months of negative growth, turned positive for the first time. And this trend is expected to continue to maintain. Before, I also said that the high prices should be grateful to freeze a lot of money, or prices will fly to heaven. However, according to the economic leading indicators reflect the detection of PMI, now the price is still falling, but there have been signs of inflation. The central bank released data show that: at the end of 9, broad money (M2) balance of 151 trillion and 640 billion yuan, an increase of 11.5%, the growth rate of 8 at the end of 0.1%, 1.6% lower than the same period last year; the narrow money (M1) balance of 45 trillion and 430 billion yuan, an increase of 24.7%, the growth rate is 0.6% lower than that at the end of 8, 13.3% higher than the same period last year. Although some people say that M2 growth is very low, but China’s M2 is the sum of the United States and Japan, so huge stock. Not only that, the most vulnerable to price formation is actually a narrow currency M1. M1 and M2 upside down since the second half of this year, M1 abnormal surge. The main reason is that a large increase in demand deposits in M1 companies, and M1 is the most likely to become a currency in circulation or investment spending. M1 surge, in fact, the formation of long-term real threat to inflation. So far, there have been people advocating the people’s Bank of China to reduce the deposit reserve. At this point, whether it is to reduce the deposit reserve ratio or to commercial banks, policy banks or other financial institutions to finance the funds, the central bank is on the water. Money is a special commodity, and it will depreciate. Therefore, if the central bank to implement loose monetary policy, will only lead to devaluation of the rmb. In view of the current strong dollar, the RMB against the U.S. dollar daily low innovation, devaluation pressure. If the formation of the devaluation of the psychological expectations, the trouble is big. Therefore, the central bank wants to maintain a relatively stable exchange rate of the foreign exchange needed to be sold, and the country’s foreign exchange reserves have been from the peak close to 3.9 trillion dollars down to the current $3 trillion and 100 billion. This loss, can not support how long. From the maintenance of the stability of the renminbi’s point of view, whether it is anti inflation or stagnation of internal or external exchange rate remained relatively stable, the central bank’s monetary policy can only be tight, not loose. Some people will increase pressure on the central bank Nabao hat, the root cause analysis in the economic downturn, but the economic downturn for many reasons, but is never enough loose monetary policy. So, the central bank put the water go? Money is smart, where to make money. Over the past 10 years, prices rose only, according to new loans in July, most of the flow of real estate, it is estimated that the situation in.相关的主题文章: