Tianmu News:

As you mentioned just now, in the context of high global inflation, we can see that the current price data in China is still relatively stable and moderate. What is the reason for this? What is your anticipation for the price trend in 2023? Thank you.

Kang Yi:

The stable operation of prices is not only conducive to the stable performance of the economy, but also conducive to ensuring people's livelihoods. China's prices remained generally stable last year, with the annual CPI rising by 2%, lower than the expected target of 3%. There were many reasons for this.

First, China did not issue excess currency, and prices still reflect the relationship between supply and demand. Let's compare China's situation with that of other countries and regions. The US has continuously raised interest rates to curb inflation, and its CPI rose 6.5% in December. Europe's CPI rose at the sharp level, still more than 10%. Japan's CPI has also been rising recently. During the past three years of pandemic prevention and control, China has not flooded its economy with liquidity. This is the first reason.

Second, the effects of ensuring supply and stabilizing prices have become apparent. Geopolitical conflicts and rising energy prices are significant factors that contribute to imported inflation. We first ensured the energy supply, such as the coal supply, which reached a total output of 4.5 billion tonnes in 2022. The stable supply of coal ensured the power supply. Also, the grain price. China's grain output has been stable at more than 1.3 trillion jin (650 million tonnes) every year for eight consecutive years, achieving "19 consecutive-year harvests." A rise in food prices would drive up the prices of many commodities. According to the requirements of General Secretary Xi Jinping, we must secure our own food supply for the Chinese people. With a population of more than 1.4 billion, if our food supply were insufficient, we would have to purchase grains on the international market, which would drive international food prices even higher. We have provided a solid foundation to stabilize the supply and prices of grains, energy and other major commodities.

Third, the supply of industrial goods and services is sufficient. As I said just now, it reflects the relationship between supply and demand. China's complete industrial system and adequate supply of goods and services contribute to the stability of consumer prices.

In 2023, there is no basis for a sharp rise in prices. We are confident that the CPI trend will remain stable in the new year. Thank you.

Shou Xiaoli:

Today was Mr. Kang's first time attending our press conference at the State Council Information Office. Thank you to all the speakers and thank you to all the reporters for your participation. That's all for today's press conference.

Translated and edited by Yang Xi, Liu Jianing, Xu Kailin, Liu Sitong, Wang Qian, Zhang Rui, Wang Yanfang, Qin Qi, Li Huiru, Gong Yingchun, Zhou Jing, Huang Shan, Daniel Xu, Tom Arnsten, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.