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Zhao Xijun, a professor from Renmin University, explains that the price hikes of crude products and food in the international market played a role in the high CPI.
"Personally, I think the rise in food price is a major factor. In addition, the price hikes of raw materials and food in the international market and the devaluation of the US dollar have a direct or indirect impact on the price rise in the domestic market."(www.hxen.com)
In a bid to contain price hikes and curb inflation, the central government has strengthened its efforts in its economic policies.
With regard to fluctuations in the latter half of the year, the professor is optimistic and predicts an ease of price hikes.
"When it comes to food, there will be a harvest of grain in July and August. That will ease the supply pressure of grain. What's more, the tightening monetary policy will also have a positive effect on controlling the price rise. As a result, the pressure of high prices might decrease in the latter half of the year."
In a bid to reach this goal, the professor emphasizes that the government should adopt more flexible economic measures facing the complicated situations in the market.