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Despite the soaring inflation rates worldwide, China's consumer prices remained generally stable last year. How do you view the situation of China's consumer prices this year? What measures will be taken to stabilize prices?

Li Chunlin:

I'm happy to answer your questions. In 2022, amidst staggering inflation rates not seen in many years and increasing pressure for imported inflation, various localities and relevant departments have taken forceful and effective measures to ensure the supply of major products and stabilize their prices, with a focus on grain and energy. They have resolutely implemented the decisions and arrangements of the CPC Central Committee and the State Council and achieved remarkable success. Domestic prices have remained stable, with the monthly CPI consistently kept below 3% and the annual CPI at only 2%. This has demonstrated a stark contrast to the soaring inflation rates seen worldwide.

Due to various factors such as geopolitical conflicts and pressures from imported inflation, domestic prices in China face several uncertainties and instabilities. However, it is important to note that China has achieved a bumper harvest in grain output for 19 consecutive years, with total output exceeding 1.3 trillion jin for many years, which provides a solid foundation for the country to maintain stable prices. Furthermore, we have ample hog production, a sufficient supply of products, stable energy sources, and an improved system to ensure supply and stabilize prices. It is fair to say that China has a solid foundation to stabilize prices, and we are confident in our capacity to meet this year's CPI target.

The Central Economic Work Conference highlighted the importance of stabilizing growth, employment and prices. Looking ahead, we will firmly implement a range of decisions and arrangements aimed at stabilizing prices made by the CPC Central Committee and the State Council, with particular attention to the following four areas: First, we will strengthen monitoring, prediction, and early warning. This requires close monitoring of both domestic and international commodity markets as well as the markets for major products that impact people's livelihoods. It is essential to analyze and predict changes in supply and demand and price fluctuations and implement targeted regulatory measures in a timely manner. Second, we will further strengthen our efforts in guaranteeing supply and stable prices for products affecting people's livelihoods. We will fully implement the national strategy for food security and the system of city mayors assuming responsibility for the "vegetable basket," stabilize the supply of output, improve links between production and sales, regulate food reserves, and ensure a stable market supply of these products. Third, we will take further steps to ensure supply and stable prices for major commodities such as energy. We will stabilize coal production, enhance our reserve capacity, and continuously regulate coal prices to ensure they are within an appropriate range. Furthermore, we will continue to increase exploration and development of China's oil, gas, and mineral resources; expand reserves and output; and strengthen the country's supply capacity. Fourth, we will also strengthen market regulation and guidance over expectations. This will involve coordinated efforts to regulate both spot trading and the future market. We will crack down on illegal activities such as hoarding and price gouging that violate laws and regulations. In addition, we will improve policy interpretation and press releases and promptly address public concerns. Thank you.