The hottest prices will restrain demand, and enter

2022-10-18
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High prices will have a restraining effect on demand, and enterprise orders may be affected.

the National Bureau of statistics released data on the 9th that the national consumer price (CPI) rose 6.4% year-on-year in June, hitting a new high

experts believe that high prices will restrain demand, and enterprise orders may be affected; At the same time, due to the continuous tightening of policies, it will be more difficult for small and medium-sized enterprises in a weak position in the financing system to obtain funds, and the survival and development of small and medium-sized enterprises will face great challenges

in the context of high prices, the prices of all kinds of daily necessities have increased. Experts predict that residents' consumption will be restrained in the future

statistics show that in addition to food, clothing, use and housing are also rising. In June, clothing prices rose 2.1% year-on-year. Among them, clothing prices rose by 2.3% and footwear prices rose by 0.5%

in June, the prices of household equipment, supplies and maintenance services increased by 2.5% year-on-year. Among them, the price of durable consumer goods rose by 0.5%, and the price of household services and processing and maintenance services rose by 11.4%

in June, residential prices rose 6.2% year-on-year. Among them, the prices of water, electricity and fuel rose by 4.1%, the prices of building and decoration materials rose by 5.4%, and the rental price of housing rose by 5.9%

Cui Yong, chief strategist of GF Securities, said that in terms of demand, high prices are an effective means to improve labor productivity, which will inevitably curb demand. At present, prices continue to rise, commodity prices remain high, and residents' consumption power is further compressed

"at the macro-economic level, high prices will have a negative impact on the orders of small and medium-sized enterprises, which will reduce the profit space of enterprises, especially the enterprises with high debt ratio, which are prone to financial tension. Especially in the late stage of increasing inflationary pressure, it will be more difficult for small and medium-sized enterprises in a weak position in the financing system to obtain funds, and life will be more and more difficult." Cui Yong said

in the second half of the year, CPI will fall back from the low overall resource trading volume of the scrap market in the near future. It is suggested to reduce the burden on small and medium-sized enterprises as soon as possible.

experts believe that under the influence of tightening policies such as interest rate hikes, CPI is expected to fall back from a high level in the second half of the year. In view of the multiple survival difficulties faced by small and medium-sized enterprises at present, it is suggested that the relevant departments should reduce the comprehensive operating costs of small and medium-sized enterprises as soon as possible

Cui Yong said that it is expected that the CPI will fall back at a high level for half a year under the experimental conditions under relatively standard temperature and humidity conditions. The main reasons include: on the one hand, the previous interest rate hike and the possible macro-control after that will make M1 fall back and reduce the pressure of imported inflation; On the other hand, the current high pork price will increase the enthusiasm of pig breeding. After a period of time, the supply of pork will increase, and the fall of pork price will drive the fall of CPI

relevant analysts of Shenyin Wanguo Securities said that China is currently facing a relatively severe inflation situation. In this case, the financing difficulty of small and medium-sized enterprises will be further improved. It is suggested that relevant government departments consider reducing the comprehensive operating costs of small and medium-sized enterprises, including tax burden, rent, logistics costs, etc. The operating costs of small and medium-sized enterprises have been reduced, which is reflected in the price cost of the end consumer market, which is beneficial to small enterprises and consumers. Cui Yong suggested that banks and other financial institutions should earnestly implement the relevant policies of the CBRC on supporting loans to small and medium-sized enterprises, and relevant departments should also issue corresponding supporting policies as soon as possible to jointly alleviate the financing pressure of small enterprises

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