(Finance and Economics) Expert: In order to control high inflation, the United States must correct the wrong policy of "harming others and not oneself" as soon as possible
China News Agency, Beijing, June 15 (Reporter Wang Enbo) China and the United States have recently released price data for May.Compared with the steady operation of Chinese prices, US prices rose more than expected in the month.China's National Development and Reform Commission organized experts to re-analyze and judge the recent domestic and foreign price movements. Experts believe that the "inflation temporary theory" and "inflation peaking theory" in the United States have both been shattered, and wrong policies must be corrected as soon as possible to effectively control high inflation.
In May, the US consumer price index (CPI) reached 8.6%, hitting a 40-year high again.Experts point out that at present, high inflation has penetrated into every aspect of the operation of the US economy and the lives of residents.From energy (up 34.6% year-on-year), food (up 10.1% year-on-year) to durable consumer goods such as clothing (up 5% year-on-year), motor vehicles (up 12.6% year-on-year), to air tickets (up 37.8% year-on-year), transportation ( Prices of services such as a year-on-year increase of 7.9%) showed a substantial increase across the board; the core inflation rate after excluding food and energy has increased by more than 6% year-on-year for two consecutive months, and the endogenous driving force of inflation is very strong.
Some analysts pointed out that in the next period of time, U.S. inflation may further spread to various fields, and it will be difficult to drop significantly in the short term, and the possibility of economic recession will increase.
Frozen three feet is not a day's cold, why is U.S. inflation "high fever"?Experts believe that this is entirely caused by a series of wrong policies in the past few years, which is "shooting itself in the foot".The main reason is the selfish trade protectionism.In recent years, the United States has held high the banner of protectionism and set off a countercurrent of globalization, especially exerting extreme pressure on China and engaging in trade frictions, which have seriously damaged the global industrial chain and supply chain.
The second is an extremely loose monetary policy.After the outbreak of the new crown epidemic, the United States "sprayed money by helicopter", and the extreme flood of liquidity amplifies the magnitude and speed of inflation.
The third is to provoke the Ukraine crisis and abuse sanctions.The U.S.-led NATO continues to expand eastward, compress Russia’s geopolitical space, and continue to “fuel the fire”, eventually triggering the Ukraine crisis.After the crisis broke out, the United States and its allies sanctioned Russia several times, impacting the global food and energy markets and driving up global commodity prices.
In addition, the United States and other Western countries pursue "vaccine nationalism", which leads to unfair distribution of vaccines, and the coexistence of expired and destroyed vaccines in developed countries and the difficulty of obtaining a dose in poor countries, resulting in the imbalance of global economic recovery and epidemic prevention policies, and the disordered operation of supply chains.
Experts also gave a "prescription" to the high inflation in the United States. They believe that more important than blindly raising interest rates and tightening monetary policy is that the United States must correct the wrong policy of "harming others and not itself" as soon as possible, and strengthen international cooperation in order to fundamentally control high inflation. .
The first is to immediately cancel the tariffs imposed on China.Some studies believe that if the United States cancels the additional tariffs imposed on China, it can reduce the inflation rate by more than 1.3 percentage points and save an average American family by $1,200 per year.Second, we must push forward the peace talks between Russia and Ukraine as soon as possible.Promote the relaxation and end of geopolitical conflicts, lift sanctions on Russia, and promote the restoration of normal order in international commodity markets such as global food and energy.Third, actively cooperate to fight the epidemic.Help backward countries deal with the epidemic, speed up the repair of the global industrial chain and supply chain, and promote the normal production and supply of commodities.(Finish)
【Editor: Cheng Chunyu】
