By Chinanews. com
The Central Economic Working Con-ference of 2010 was accompanied bya high CPI-5.1%. The Natrional Bu-reau of Statistics released the macro-economic data in advance on December 11th in2010 for which the Bureau claimed they wantedto release the data soon afterwards the data wasobtained. However, more people believed it wasthe ongoing Central Economic Working Con-ference that advanced the data release.
Back to August 10th 2009, the cover storyon Time magazine was "Can China Save theWorld" with an illustration, where a chubbypanda was pumping up the defiated earth withsagging world economy. In that month, China´sCPI saw a year-on-year drop of1.2%, a negativegrowth in 7 consecu-tive months, with de-cline in prices of fivecommodities amongthe eight commoditiesfor calculating CPI.Under the deflationarypressure, a shift in the macro policy, particularlythe monetary policy seemed to be a fable.
But one year later, the fable comes true.As the weathervane of the Central EconomicWorking Conference, the Conference of thePolitical Bureau of CPC Central Committeeheld on December 3rd in 2010 by conventionset the tone for this year´s Central EconomicWorking Conference-to implement proactivefiscal policy and prudent monetary policy and toenhanvce the relevance, flexibility and effective-ness of macro regulation ("proactive and pru-dent, cautious and flexible" to be short). Afterhaving tried the moderately loose, to be exact,extrerriely loose monetary policy for three years,China´s policy makers are considering again theprudent policy.
There were signs for inflation, which wereperceived by Premier Wen Jiabao. "Last year wasmost difficult for economic development, whilethis year will be most complicated," said PremierWen when communicated with netizens priorto this year´s NPC and CPPCC. Afterwards,the housing price saw the sharpest ris´e and thatoutside the Beijing 5th ring road reached RMB20,000, a shocking beginning for this year´shigh commodity prices.