BNP Paribas' Rong on China CPI and PPI

The video discusses the current state of China's economy, focusing on CPI and inflation expectations, the impact of the COVID-19 virus on economic growth, and the policy measures being considered to address these challenges. It highlights the subdued CPI inflation, the potential short-term impact of the virus on GDP, and the role of fiscal and monetary policies in stabilizing the economy.

What is one major factor that has been a drag on headline CPI?

• Increased consumption

• High PPI

• Pork prices

• Rising oil prices

What is the expected trend for PPI inflation into 2022?

• Decrease sharply

• Increase significantly

• Moderate

• Remain the same

What is the expected impact of the latest virus outbreak on Q3 GDP growth?

• Increase by 1 to 1.5 percentage points

• No impact

• Decrease by 1 to 1.5 percentage points

• Increase by 2 percentage points

What is the current annual GDP growth forecast mentioned in the transcript?

• 7.5%

• 9.0%

• 8.7%

• 8.3%

How does the transcript describe the impact of the COVID-19 resurgence on economic growth?

• Beneficial for growth

• No impact

• Short-lived and similar to a previous episode

• Long-term and severe

What role is fiscal policy expected to play in addressing economic weaknesses?

• No role

• Only in the long term

• Major role in countering downward pressure

• Minor role

What is one of the targeted supports mentioned for SMEs?

• Increased taxes

• Higher interest rates

• Accommodative credit and liquidity conditions

• Reduced government bonds