MNI China Press Digest Jan 13: CPI, Money Supply, Digital Econ

The following lists highlights from Chinese press reports on Thursday:

• China’s CPI is expected to rise moderately this year from 2021’s 0.9% gain, as pork prices enter an upward cycle and higher energy and raw material prices further affect consumer prices, the China Securities Journal reported citing analysts. PPI will continue to ease from the 8.1% gain in 2021 as commodity prices had peaked, the newspaper said. CPI and PPI are seen at 2.5% and 5.0% in 2022, respectively, with the gap between the two largely narrowing which will help ease the cost pressure of downstream manufacturers, the newspaper said citing a report by the Chinese Academy of Social Sciences.
• China’s new yuan loans and aggregate financing are expected to surge this month as credit demand picks up with banks’ increased lending capacity following RRR cuts as well as accelerated infrastructure investment amid the early issuance of government bonds, the China Securities Journal reported citing Zhou Maohua, a researcher at China Everbright Bank. The growth rate of aggregate financing has risen for a second month in December with monetary policies supporting carbon emission and tech innovation as well as increased fiscal spending, the newspaper said citing analysts.
• China issued its first national plan for the digital economy, aiming to boost the added value of the industry to 10% of GDP by 2025 from 7.8% in 2020, the Securities Times reported citing policy paper by the government. The plan calls for upgrading digital infrastructure, accelerating the construction of information networks and vigorously promoting the digital transformation of major industries and enterprises, the newspaper said. The plan also calls China to be a world leader in digital economy by 2035, the newspaper said.