According to Reuters news agency on Thursday, as commodities continue to strengthen in April, inflationary pressures may further intensify and the challenges faced by the central bank gradually increase. If inflationary pressures continue into the second half of the year without significant easing, policy attitudes may gradually tighten and may initially be reflected mainly in quantitative operations to deliver signals.
CITIC Securities’ Mingming Fixed Income Research Team was quoted as saying that this round of inflation may exceed expectations under the influence of “carbon neutral” and related environmental protection production restriction policies. If the upstream commodity prices go up further under the supply-side impact, it will intensify the downstream commodity prices and the inflationary pressure on monetary policy is increasing.
Zheng Kuifang, a senior researcher in financial markets, believes that China is facing the pressure of imported inflation, and the year-on-year increase of PPI (industrial producer ex-factory price index) may accelerate in the coming months, and may reach a stage peak in the second quarter, with a lag in the conduction of CPI (consumer price index), which may rise to above 2% in the fourth quarter.