China has “the confidence and ability” to keep the consumer price index (CPI, the main indicator of inflation) below the 3% limit set for 2023, according to the National Development and Reform Commission (NDRC), the country’s top economic planning body.
The rate of CPI growth experienced by China in 2022 “contrasted sharply with high inflation globally,” Li Chunlin, vice president of the CNRD, said at a press conference, quoted by state television CGTN.
Specifically, China’s official CPI remained at 2% – the official limit was, as this year, 3% – in a 2022 marked by restrictions and confinements derived from the national policy of ‘zero covid’, already practically dismantled, which made some analysts wonder if the Asian country would experience a strong rebound in inflation after the reopening similar to that of other large economies.
Li cited factors that “demonstrate that China has a solid foundation for price stability” such as an “abundant” supply of raw materials or a “secure and reliable” supply of energy, as well as “adequate” pork production capacity or grain harvest levels that have exceeded 650 million tons “for many years.”
The representative of the CNRD assured that the agency will maintain the supply of key raw materials, guarantee the stable supply of energy and ensure that the prices of the charcoal – material with which China continues to generate most of its energy – fluctuate in a “reasonable range”.