National Development and Reform Commission Zhou Wangjun, deputy director of the price department, told China's government website 10, although the prices of most necessities such as vegetables have increased rapidly recently, the state's important material reserves are adequate, and there is sufficient material basis and means to prevent inflation. He suggested that a series of measures should be taken to guard against inflation, including the adoption of fiscal policy to strengthen market price regulation, to prevent the speculation of idle capital, and to provide certain subsidies to low-income urban and rural groups.

Zhou Wangjun believes that prices will still run high in October, November and December, and will be higher in October and November.

Zhou Wangjun pointed out that this year Price rise Unlike in the past, prices rose substantially in 2004 and 2007 due to insufficient supply, and this year's price increase was caused by excess liquidity. He pointed out four factors: first, Excessive currency issue In particular, the recent implementation of quantitative easing monetary policy in the United States has led to a sharp rise in commodity prices in the international market; second, the temporary factors of weather disasters; third, the rapid movement of labor, capital and land resources to the cities, leading to the rise of rural labor costs; and fourth, the factors of hot money speculation. In the first half of this year, prices of mung beans, garlic, cotton and so on all increased.

Zhou Wangjun said that due to the full storage of state key materials, China has sufficient material basis and means to prevent inflation. In order to control the inflation rate, the state will take four key policies: first, to develop agricultural production, to focus on the development of grain, live pigs and basic consumer goods; two, to ensure the supply, and to provide adequate supplies through the adjustment of material distribution and import and export; and three, to provide appropriate subsidies to low-income groups, including low-income groups in urban and rural areas, poverty-stricken students in schools, and so on, through financial channels to make proper subsidies so that their lives will not be lowered because of rising prices; fourth, take some macro measures, such as fiscal policy, strengthen market price regulation, prevent speculation in idle funds, and make clear understanding of prices and make rational consumption through the interpretation of policies.

To prevent speculation in the price of idle capital, Zhou Wangjun revealed that the state has set up a special mechanism. We should monitor the trend of idle capital and strictly prevent them from entering the real economy, especially the market speculation of residents' daily necessities, so we need to set up a special mechanism to guard against them.