Zhu Changzheng: The Transmission and Response of the Rise of Bulk Commodity Prices
Release time: 2021-06-15   Author: Zhu Changzheng

Unprecedented quantitative easing has made the US price index hit a new high in recent years, and the rise in global bulk commodity prices is also pushing China's PPI to continue to rise. In the future, the US inflation and the rise of global raw material prices will affect China's real economy and consumer goods prices to a certain extent, which has aroused vigilance from all walks of life. Whether it is imported inflation or the continuous increase in bulk commodity prices, the transmission to consumer products involves issues such as the competition pattern of the terminal consumer market, the length of the industry chain, currency flow, the increase in labor productivity, and the elasticity of the RMB exchange rate. An objective analysis of the transmission mechanism from the price increase of raw materials to the price of consumer goods, the flexibility of the RMB exchange rate and the transmission mechanism of imported inflation will help determine whether China's price level will break the 3% warning line, and whether a round of imported inflation will soon be formed. This article analyzes the reasons for the rise in international bulk commodity prices, the continuity and impact of the rise in bulk commodity prices, and how to deal with the continuing rise in bulk commodity prices.