Galaxy Securities pointed out that since September, the continuous recovery in CPI has mainly relied on the following three aspects. One is the weakening of the food item due to rising food prices, the second is the recovery in prices of some consumer goods and services under the policy of expanding domestic demand, and the third is the rise in jewellery prices driven by international gold prices. Looking ahead to the future market, the CPI recovery needs to focus on the following two aspects: First, with the gradual launch of local cuisine in the south and the increase in vegetable supply in facilities in the north, the tight supply and demand situation in the market is expected to ease partially, so the subsequent increase in vegetable prices may be less than November. Considering that pork continues to drag on CPI, fresh fruit prices are growing steadily, and the drag on food CPI may increase slightly. Second, prices are weakening due to pre-demand demand for some consumer goods under the policy of expanding domestic demand. It may be necessary to further expand the scope of use of national supplements and strengthen policies related to service consumption in order to drive a more sustainable recovery in consumer goods and services prices. Considering that the “15th Five-Year Plan” lists “expanding the supply of high-quality consumer goods and services” as a key support for the strategy to expand domestic demand, we are cautiously optimistic about the subsequent recovery in CPI.

Galaxy Securities pointed out that since September, the continuous recovery in CPI has mainly relied on the following three aspects. One is the weakening of the food item due to rising food prices, the second is the recovery in prices of some consumer goods and services under the policy of expanding domestic demand, and the third is the rise in jewellery prices driven by international gold prices. Looking ahead to the future market, the CPI recovery needs to focus on the following two aspects: First, with the gradual launch of local cuisine in the south and the increase in vegetable supply in facilities in the north, the tight supply and demand situation in the market is expected to ease partially, so the subsequent increase in vegetable prices may be less than November. Considering that pork continues to drag on CPI, fresh fruit prices are growing steadily, and the drag on food CPI may increase slightly. Second, prices are weakening due to pre-demand demand for some consumer goods under the policy of expanding domestic demand. It may be necessary to further expand the scope of use of national supplements and strengthen policies related to service consumption in order to drive a more sustainable recovery in consumer goods and services prices. Considering that the “15th Five-Year Plan” lists “expanding the supply of high-quality consumer goods and services” as a key support for the strategy to expand domestic demand, we are cautiously optimistic about the subsequent recovery in CPI.