China's core CPI has been below 1% for three consecutive years, and CPI and PPI have also been moving downward since this year. Such low inflation contrasts sharply with surging inflation globally. How to understand the reasons for China's low inflation? How does the economy perform in the context of low inflation? What policy measures can be adopted to maintain sufficient aggregate demand and moderate inflation?
To address these issues, on July 24, 2023, China Finance 40 Forum (CF40) held a press briefing to launch the Q2 2023 Macroeconomic Policy Report.
Zhang Bin, CF40 Non-Resident Senior Fellow and Deputy Director of the Institute of World Economics and Politics at Chinese Academy of Social Sciences, and Zhu He, Research Fellow of CF40 Institute, presented the Q2 2023 Macroeconomic Policy Report: Economic Performance amid Low Inflation.
Following the report launch were discussions by Gao Shanwen, CF40 Member and Chief Economist of Essence Securities, and Guo Kai, CF40 Senior Fellow. Experts pointed out that insufficient demand is still the major challenge. They suggested that a specific inflation target and strong policy support should be employed to boost market confidence.
Wang Haiming, CF40 President, moderated the seminar.
