Based on 1985 price index, 1986 price index rose by 6.0%, 1987 price index rose by 13.7%, and 1988 price index rose by 34.8%.
The main reason for this inflation is still * * * In order to meet the investment growth requirements of social fixed assets and solve the problem of capital shortage of enterprises, the fiscal expenditure of * * * has been increased since 1986, and the fiscal deficit of * * * has been continuously expanded. Especially after the implementation of 1988 financial "one household" system, the social demand has further soared.
Second, by the first half of 1993, inflationary pressure began to rise again, and the financial industry was in disorder.
In the domestic financial market, a large amount of funds are concentrated in the real estate market in coastal areas. In order to realize their different interests, banks, financial institutions and local governments evaded the regulations and supervision of the central bank and raised a lot of money for the real estate industry, which led to excessive money and repeated breakthroughs in credit scale.
Because this regulation has learned the lesson that excessive monetary tightening led to economic supercooling in the past, the implementation of this monetary policy has always followed the principle of "moderate tightening", and finally successfully achieved a "soft landing" of the economy at 1996.
But in fact, it has brought some negative effects: the tightening of credit situation has destroyed the balance of comprehensive credit to some extent; Restricting inter-regional credit has greatly reduced the speed of currency circulation.
3. In 2003, the national consumer price level rose by 65,438 0.2% over the previous year.
Cities rose by 0.9%, while rural areas rose by 1.6%.
Among the consumer prices, food prices rose by 3.4% and service prices rose by 2.2%.
The retail price of commodities decreased by 0. 1%.
The ex-factory price of industrial products rose by 2.3%.
The purchase prices of raw materials, fuel and power increased by 4.8%.
The investment price of fixed assets rose by 2.2%.
The production price of agricultural products rose by 4.4%, including grain by 2.3%, cotton by 35.3%, oil by 19.4% and livestock by10.8%.
At that time, the inflationary pressure in China mainly came from the huge demand for raw materials and other commodities in infrastructure projects such as factories and roads.
At the same time, with the rapid economic growth, China's demand for raw materials has increased dramatically.
In 2003, China's crude oil imports increased by 3 1.2% compared with 2002, reaching a record 9 165438+ 10,000 tons.
China mainly adopts a prudent monetary policy.
Fourth, since 2005, inflation caused by excessive economic growth and long-term international surplus.
It has always been an international financial crisis.
Extended data:
The difference between inflation and deflation;
1, meaning and essence are different: inflation refers to the economic phenomenon that the circulation of paper money exceeds the amount needed in circulation, causing the devaluation of paper money and the rise of prices. Its essence is that the total social demand is greater than the total social supply.
Deflation is an economic phenomenon opposite to inflation. It refers to an economic phenomenon that the overall price level has been declining for a long time and the currency has been appreciating continuously during the period of relative economic contraction. Its essence is that the total social demand is less than the total social supply.
2. Different performance: The most direct performance of inflation is the depreciation of paper money, rising prices and declining purchasing power.
Deflation is often accompanied by declining production, shrinking market, declining profit rate of enterprises, decreasing production investment, increasing unemployment, decreasing income and weak economic growth.
Mainly manifested in the low price, the price of most goods and services fell.
3. Different causes: The main reason for inflation is that the total social demand is greater than the total social supply, and the currency circulation exceeds the actual amount of money needed in circulation.
The main reason of deflation is that the total social demand is less than the total social supply, and the long-term industrial structure is unreasonable, making it difficult to form a buyer's market and export.
4. Different harmfulness: Inflation directly devalues paper money. If the income of residents remains unchanged, the living standard will decline, which will lead to the disorder of social and economic life and is not conducive to economic development.
However, in a certain period of time, moderate inflation can stimulate consumption, expand domestic demand and promote economic development.
Deflation leads to price drop, which is beneficial to residents' life, but it will seriously affect investors' confidence and residents' consumption psychology in the long run, leading to vicious price competition, which is unfavorable to long-term economic development and people's long-term interests.
5. Different control measures: The most fundamental measure to control inflation is to develop production and increase effective supply. At the same time, we should take measures such as controlling money supply, implementing moderately tight monetary policy and fiscal policy of living within our means.
To control deflation, we should adjust and optimize the industrial structure, comprehensively use investment, consumption, export and other measures to stimulate economic growth, implement a proactive fiscal policy, a prudent monetary policy and a correct consumption policy, and adhere to the policy of expanding domestic demand.