China's inflation in 2022 is expected to be low

 China's inflation in 2022 is expected to be low

China's top policymaking body expects inflation in 2022 to be modest as Western countries tighten their currencies.

China's National Development and Reform Commission (NDRC) said inflation will remain modest this year, if changes in monetary policy elsewhere weaken commodity prices. Global.

The country's top policymaker forecasts that China's inflation risks will decrease in 2022, as the impact of Covid-19 and the world supply shortage become less and more severe.

This agency forecasts the average consumer price index for the whole year 2022 at 0.9% - lower than in previous years.

According to the NDRC, the producer price index is also likely to cool down after increasing 8.1% in 2021, due to the abundant domestic supply of industrial and energy products, which can resist "volatility". extraordinary prices".

As global commodity prices surged last year, Beijing sought to further increase domestic supply, cracking down on speculation and hoarding.

Oil prices hit a seven-year high on Friday (February 4) and are expected to climb even higher.

China expects monetary tightening in Western countries to weaken price inflation for imports. Bloomberg experts estimate that the group of seven central banks will cut the total amount of asset purchases in 2022 to only 10% of the level in 2021.