Fur Raw Material Prices Is Expected To Control The Pressure

nal Logistics Information Centre senior economisthave been unbearable to reflect." Chenzhong Tao
Chen Zhongtao a recent exclusive interview, said thatsaid.
in the second half, the pressure of upstream rawHowever, according to China Logistics Information
material prices may be easing.Chen ZhongtaoCenter, market monitoring, the average price of
engaged in the analysis of industrial price index ofcapital goods market in China has experienced three
China's manufacturing PMI (PMI index) monitoring. Heconsecutive months of continuous rise, the
told reporters that the first half, the pressure ofpurchasing price index fell for two consecutive
higher raw material prices.months: in June from up to down, and up down
From the PMI index to reflect the purchase prices of0.34%; July is the first time in four months, dropped
raw materials price index, although the July drop toto below 60%.
60%, but still as high as 58.9%, reflecting the trendChen Zhongtao think this indicates that the second
of rising raw material prices are still relatively strong.half of the upstream raw material prices pressures
The feedback from the business point of view,may be easing. Purchasing price index fell for the
reflecting the proportion of raw material pricesreason, he said, mainly upstream of the downstream
continue to rise steadily company, in July was 34%,industry unbearable rising raw materials prices, rising
up 1 percentage point last month.resistance to increase. But Chenzhong Tao also said,
Different industries, the majority of the industry,in the second half is still necessary for the state to
price indices continue to maintain a high level. 20continue to strengthen macro-control, stability, prices
industries, only less than 50% of fabricated metalof upstream products, preventing transmission to the
products, and the remaining 19 industries all abovedownstream increase in inflation pressure; while
50%, of which 60% of the nine industries, especiallypreventing the rising cost of normal production and
oil processing and coking industry, the pharmaceuticaloperation of the business difficult.
manufacturing industry as the highest two , 70% orThis end, Chen Zhongtao suggest the department
more.concerned in the present case, the resource cost
Purchase price index higher in these sectors is dividedincreases caused the price of new commodity price
into three categories: First, the main raw materials ofadjustment measures, and the tax policy should be
petroleum crude oil processing and coking industry,suspended to prevent cost-push inflation. At the
the pharmaceutical industry; Second, grain and cottonsame time take measures to restrain demand
and other agricultural products as raw materials forgrowth, to prevent the demand-pull inflation.
food processing and manufacturing and beverageContinue to implement moderately tight fiscal policy,
manufacturing, garments manufacturing and furmonetary policy, economic growth shifting from fast
feather products industry, textile industry;to prevent overheating, especially to prevent a larger
Third, mineral resources as raw materials ferrousrebound in fixed asset investment growth; speed up
metal smelting and rolling processing industry,the implementation of the relevant industrial policies,
non-ferrous metal smelting and rolling processingspeed up the implementation of energy conservation,
industry. "This year, the upstream raw material pricesthe pace of eliminating backward production capacity;
continued to rise, currently has manufacturing,continue to take effective measures to firmly
business to enormous pressure, most enterprisesrestrain the "two high and one capital" exports.