1. Supply shortage, especially the rise in domestic food prices and the rise in the prices of energy raw materials in the international market. In the industrial field, it is mainly caused by excessive demand and limited supply. The direct cause of the current increase in market prices of domestic agricultural products is the continuous decline in the area and total output of agricultural products in my country in the past two years. In 2007/2008, domestic oilseed production dropped significantly by 12.2%, of which soybean production decreased by 20%, rapeseed production decreased by 25%, and cottonseed production decreased slightly. Cut production by 5%. The background is the continuous reduction of domestic cultivated land, water shortages and poor infrastructure conditions. In the 10 years from 1996 to 2006, my country's total cultivated land area decreased by 124 million acres. Among all domestic provinces, only 6 provinces have cultivated land of more than 100 million acres. In the future, arable land will continue to decrease and the supply shortage of agricultural products will be difficult to reverse, so the supply of agricultural products will become increasingly tight. While the supply and demand of agricultural products are tight, domestic demand for agricultural products remains strong. China's per capita GDP has maintained a growth rate of more than 10% since 2000, and China's per capita consumption of agricultural products is highly correlated with per capita GDP. The improvement of living standards has led to rapid growth in per capita consumption of agricultural products. The income levels of urban and rural residents have increased, and the consumption of agricultural products has increased. Urbanization Acceleration has increased consumer demand for commercial agricultural products, and farmers’ production structure and lifestyle have changed significantly. In the future, the demand for agricultural products will enter a period of rapid growth.

2. The foreign trade surplus grows too fast, resulting in excessive foreign exchange reserves, which causes the money supply to grow too fast, causing prices to rise. There are several reasons for China's trade surplus this year: First, globalization, cross-border outsourcing, and supply chain reorganization are in an accelerated stage, and cross-border outsourcing is now very popular; second, there is a time lag in the reorganization of the comparative advantage pattern, that is, labor cost intensive Large-scale production and services are usually first outsourced to China, India and other places, while the creation of new job opportunities and new export advantages in developed countries often lags for a period of time, which naturally expands the trade imbalance; third, FDI plays an important role in cross-border outsourcing and changes play a large role in the trade balance. China has formed a processing trade base dominated by foreign-funded enterprises, and the supply chain continues to extend and the added value continues to increase. The exchange rate elasticity of this kind of production and trade is quite small; fourth, the surplus has suddenly expanded and continued to grow since 2005, mainly due to The gap between import growth and export growth has widened. At the same time, FDI production and sales in China have increased significantly, replacing China's imports. These factors determine that China's trade surplus is the result of the new global division of labor, and trade surplus will be a long-term phenomenon. If there are no other reforms and the direction of capital flows between China and other countries does not reverse, trade surplus will be a normal phenomenon in China for a long time to come, and changes in the RMB exchange rate will not help fundamentally Reform China’s trade surplus pattern.

3. my country’s recent excess liquidity. The foreign exchange settlement and sales system prompted the central bank to issue a large amount of base currency. A large amount of liquidity did not enter the commodity market, but flowed into the real estate market and capital market with higher returns, leading to an increase in asset prices. The causes of excess liquidity in my country include high savings rate and low consumption rate, "double surplus" in current account and capital account, joint-stock reform and listing of a large number of state-owned banks, and the difference between deposits and loans, which increases banks' impulse to lend.

4. The prosperity of the stock market. The bull market has led to a wealth effect, which has led to more consumption and more demand. When the overall supply remains unchanged, increasing demand will increase price pressure, and inflation will rise.

5. Cost push. In recent years, rising energy prices (especially oil prices) have put pressure on Chinese manufacturing companies, and stricter environmental standards have also increased costs for companies, driving up prices.

6. Various unpredictable natural disasters. Take the snowstorm this winter for example.