Experts: Conditions fine, will keep prices stable

China has the right conditions in place as well as capabilities to keep prices stable this year despite rising global inflation pressures, officials and experts said on Monday.

Experts expect inflation in China to remain controllable this year as the government's effective measures are expected to increase market supply and support price stability.

Hu Zucai, deputy head of the National Development and Reform Commission, said China is capable of meeting the consumer inflation target of around 3 percent for this year.

Citing the strong resilience of China's economy, its large market space, its sufficient policy tools as well as the abundant supply of industrial and agricultural products, Hu said China has the conditions, capabilities and confidence to keep prices stable this year.

Data from the National Bureau of Statistics showed China's Consumer Price Index, a main gauge of inflation, rose 0.9 percent year-on-year in January, much lower than the levels of 7.5 percent and 5.1 percent in the United States and the eurozone, respectively.

Meanwhile, China's Producer Price Index, which gauges factory-gate prices, rose 9.1 percent from a year ago, lower than the over 20 percent increase in the eurozone.

Facing a complicated and severe economic situation, the NDRC will make a big push to ensure stable supplies and prices of key commodities such as grain, coal and iron ore, Hu said.

Hu also said the NDRC will reinforce supervision of the futures and spot markets and crackdown on market violations and illegal activities like spreading false information, hoarding, price gouging and speculation.

Wen Bin, chief researcher at China Minsheng Bank, said he believes inflation in China is likely to remain controllable this year given the government's effective measures to ensure stable supplies and prices.

Agreed Zhou Maohua, an analyst at China Everbright Bank, who said he expects inflation in China to remain mild this year. China is capable of meeting the inflation target in 2022, he said.

He also said the government's ongoing efforts to ensure stable supplies and prices will help ease the pressure on rising energy and raw materials costs for some midstream and downstream enterprises.

Zhou explained the recent commodity price spikes are affected by factors like geopolitical tensions. He said commodity prices may remain elevated in the short term and then gradually stabilize with the government's effective measures to ensure stable prices and supplies.

Although China is facing challenges like the rising global commodity prices and geopolitical tensions, Lian Weiliang, deputy head of the NDRC, said he believes China has the wherewithal and resources to ensure safe and reliable supply of energy.

Lian noted the rising global crude oil and natural gas prices amid the Russia-Ukraine tensions will affect China, but the impact would be manageable.

According to him, China has diversified its oil and gas supplies and imports will remain stable as long as all the parties concerned implement the contracts.