CHINA PRESS: CPI Shows Need For Strong Government Intervention

The government should increase investment in public goods to address insufficient effective demand after August’s CPI rose 0.6% y/y and PPI fell 1.8% y/y, according to Zhang Liqun, a researcher at the Macroeconomic Research Department of the State Council. Zhang noted although food-price rises would be short term, authorities should support low-income groups' consumption in a timely manner. Wang Qing, chief macro analyst at Dongfang Jincheng, said downward pressure on industrial consumer goods and service prices would see September's CPI reach around 0.5%, ending two consecutive months of acceleration. (Source: Yicai)