This round of price increase is more complicated, mainly due to five reasons: first, the rising cost factors, including rising labor costs and rising prices of resources and land elements; Second, international input factors, commodity prices rose. For example, the rising prices of oil, soybeans and cotton, which are highly dependent on foreign countries, also have an impact on the domestic market. The third reason is excess market liquidity. The fourth reason is natural disasters. This year (20 10), there were many extreme weather, some of which lasted for a long time, which still affected the production of some crops, such as early rice, cotton, sugarcane, and some small agricultural products, such as vegetables, which were also greatly affected. There is also the problem of speculation, mainly focusing on cotton, mung beans and garlic. Generally speaking, the reasons for rising prices are complicated, and there is a process of accumulation, and then they are superimposed and integrated, so the countermeasures need to be comprehensive. However, in view of the above five factors, some price experts point out that the most fundamental reason is excess market liquidity. Because inflation is actually a monetary phenomenon. This is why this round of price increase this year is not only the price increase of individual products like in 2004 and 2007, but also the increase of more varieties. To curb the rising trend of prices, it is necessary to comprehensively implement policies and do a good job in the leading role of policies and the supervision of the price market. 1October 20th, the State Council issued the Notice on Stabilizing the General Level of Consumer Prices to Guarantee People's Basic Living (referred to as "Article 16 of the State"), which opened the prelude to this price control policy. "Article 16 of the State" mainly protects both ends. On the one hand, it protects farmers' enthusiasm for production, on the other hand, it subsidizes low-income groups and establishes a mechanism linking price increases with the level of low-income security. In addition, the "Article 16 of the State" has also made great efforts in the intermediate link and circulation link, and there are eight articles in this respect. Especially for the green passage, the Notice decided that from 65438+February 1 day, all toll roads will be free of tolls for vehicles legally loaded with fresh agricultural products, and potatoes, sweet potatoes, fresh corn and flowers will be included in the catalogue of green passage varieties. The green channel policy will be implemented for a long time and will not be adjusted in the future. In fact, after the publication of "Article 16 of the State", there are corresponding policies and measures from ministries to localities. Including strengthening price supervision and inspection, establishing and improving the price regulation and supervision mechanism, increasing the supply of grain and oil reserves, curbing excessive speculation in agricultural futures trading, and standardizing market order. In response to malicious hoarding and speculation, disrupting market order, the National Development and Reform Commission intensified its crackdown and exposed a number of unscrupulous operators, including some state-owned enterprises.