After the break, the CPI inflection point has been closely controlled and house prices are still the focus of inflation.

The year-on-year increase in the CPI in June not only jumped to 6% on a one-on-one basis, but also hit a new high in three years. The price of this round, which began in July 2010, has risen rapidly. It has been one year. After the “broken six” CPI when the inflection point?

The prices of the eight categories of goods and services that make up the CPI have both increased year-on-year, and the CPI has risen while the economic growth rate has fallen. This reminds us that this round of price increases is not the same as usual, with intricate and complex factors behind it, which greatly increases the difficulty of governance.

Zhang Liqun, a researcher at the State Council Development Research Center's Macroeconomic Department, pointed out that although housing prices are not directly included in the CPI, domestic housing prices have continued to rise rapidly in previous years, greatly weakening the people’s ability to withstand rising commodity prices.

Since last year, the deposit reserve ratio has been raised 12 times in a row, and five interest rate hikes have been made. The situation of excess domestic liquidity is being effectively mitigated. Except for the periodic fluctuations in pork prices, the supply and demand of agricultural products was better than expected. Especially in the real estate sector, national regulation has hit speculative and investment demand. Yao Jingyuan, the former chief economist of the National Bureau of Statistics, predicts that the year-on-year increase in CPI will begin to stabilize in the third quarter of this year, and will drop significantly in the fourth quarter.

However, the price trend is still full of uncertainty, and price issues must not be taken lightly. As Premier Wen Jiabao of the State Council stated clearly during his recent inspection tour in Liaoning, “The general level of price stability is still the top priority for macroeconomic regulation and control.”

Liu Zunyi, chairman of CIC International (Hong Kong) Co., Ltd., believes that the current governance of inflation must focus on the two sources of agricultural product prices and real estate prices, while paying attention to protecting low-income groups.

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