There Is Something Wrong With Prices In China.

In P > China, it is common for consumers to bargain when shopping.

As for inflation data in China, investors should also consider it carefully.

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< p > official data show that China's March < a href= "http://sjfzxm.com/news/index_cj.as" > consumer price index < /a > (CPI) year-on-year increase from 3.2% in February to 2.1%.

CPI's rise is expected.

The rise in food prices in February was affected by the Spring Festival holidays. Last year's Spring Festival was in January.

After the holiday, food prices began to slow down.

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< p > however, for a long time, Chinese families have always suspected that < a href= "http://sjfzxm.com/news/index_c.asp" > CPI < /a "did not fully reflect the actual situation of rising prices in life.

Some Internet users have laughed at this: the staff of the government statistics department do not have to pay for their daily necessities, so they do not know what the actual price level is.

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The data provided by P (Alibaba), the largest online shopping platform in China (Alibaba), show that such suspicion is not without reason.

The Alibaba's Internet shopping price index based on online trading shows that prices rose by 10.6% in February over the same period.

The commodity category and composition of CPI basket sold by Alibaba are different, but the difference between the figure and official figure of the company is very large.

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Housing prices in China's large and medium-sized cities are also rising rapidly. < p >

Data from Soufun, a real estate broker, show that housing prices in Guangzhou and Beijing are rising at a two digit rate.

According to the data provided by another real estate broker, Centaline, the rental price in Shanghai rose by 13% over the same period last year.

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There are also reasons for such a situation in < p >.

In the Chinese economy, the money supply increased by 13.8% in 2012 compared with the previous year, while the gross domestic product (GDP) growth in that year was 7.8%.

In the first two months of 2013, new RMB loans increased significantly, and the money supply increased to 15.2%.

At the same time, wages are growing at a rate of two digits.

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The P was more comfortable with the modest increase in CPI in March.

Hang Seng China business index rose 1.9% on Tuesday.

However, if the actual a href= "http://sjfzxm.com/news/index_s.asp" > inflation rate < /a > CPI is higher than that of CPI, then official data may not be suitable as a predictor of tightening monetary policy.

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