From Chinese Press

The rising burden of CPI

(China Daily)
Updated: 2010-11-16 07:58

Zhang Ping, director of the National Development and Reform Commission (NDRC), said recently that the consumer price index (CPI) would rise by more than 3 percent this year. But that has not surprised people because they already knew it, says an article in China Youth Daily. Excerpts:

Neither Zhang's statement nor the latest study of the Chinese Academy of Social Sciences (CASS), which says the rise in CPI from January 2006 to May 2010 was manmade, has surprised the public, because it already knew those facts.

In the past, related departments have resorted to every conceivable means to show that the CPI had not crossed the predicted target. But their actions to fool the people and higher authorities have borne the opposite result: angered the public.

By not admitting facts, related departments have failed on two fronts. One, they have failed to please the people because the latter pay money to buy goods and hence know how much prices have risen. And two, by concealing facts, they have prevented decision-makers from devising pertinent policies. Only if a policy is based on accurate data can it help ease a crisis.

Non-government sector employees are facing more problems because of the price rise. But the Ministry of Human Resources and Social Security has decided to adjust the salaries of civil servants. So what happens to non-government sector workers?

Hopefully, the NDRC's sincerity and the CASS study will make policymakers change their mindset.

(China Daily 11/16/2010 page9)