Keeping inflation at a reasonable level

A recent report by the National Bureau of Statistics contained several figures that caught one's attention.

The total volume of imports and exports was $166.2 billion in February. The trade surplus was $8.6 billion, a dramatic decrease from the surplus of $19.5 billion in January. The producer price index (PPI) grew by 6.6 percent in February over the same period last year, which is higher than that in January, 6.1 percent. And the consumer price index (CPI) jumped by 8.7 percent in February over the same period last year, a record high for a monthly rise in 11 years.

All these figures caused worries about stagflation, a situation where slow economic growth and high inflation happen at the same time. This led to speculation over possible changes in economic policies, especially monetary.