1, currency factor (currency depreciation)

Quantity of money × velocity of money circulation = commodity traded in economy × price level (MV=PQ)

After the economic crisis in 2008, in order to stimulate economic development, first, an extremely loose monetary system was adopted; Second, government expenditure has been increased, public construction has been carried out on a large scale, the Three Gorges Project, a million-kilometer high-speed highway, military expenditure has increased substantially, 3,000 W affordable housing is under construction, and real estate has been entered by the whole people. In recent years, a huge amount of money has been derived, which has increased M2 to a new historical high.

2. The physical improvement brought by polarization.

As mentioned above, the huge amount of money flows into the society, and the first thing that flows into is a few industries, such as resources, construction, banking and so on. When the money in hand exceeds their reserved money, they tend to spend, such as high consumption pushing up the average price.

Second, cost drives inflation.

1, land is the most important means of production. Due to its rigid supply and high tax rate, land has increased by more than ten times and hundreds of times in recent years, and the cost of factory buildings and housing has been greatly pushed up. The upward adjustment of terminal commodity prices has become the main means to digest costs.

2. The minimum wage, compulsory insurance and other laws make the labor price rise. The cost of labor-intensive industries (agriculture and manufacturing), which account for a large proportion of China's economy, has risen.

Third, structural changes lead to inflation.

Emerging industries are constantly emerging, and some old industries are declining. Departments with increasing demand, product prices and wages. For example, when the degree of industrialization is low, the contradiction between agricultural backwardness and rapid economic development is not prominent, but with the accelerated development of industrialization and urbanization, one industry is transferred to another. (The original farmers became builders and their heirs became real estate agents), which increased the demand for gasoline, metals and electricity.

Fourth, imported inflation.

It can be found from the news that developing countries represented by the BRICS countries are shrinking their currencies, while the US dollar and the euro are still loose. This will bring the momentum of foreign currency shocks. Take the US dollar as an example: the loan interest rates of domestic banks such as CCB and ICBC are all above 7%, and the loan interest rate of US dollar is 0.25%, which will add 0.05 points to Hong Kong banks. The huge spread will make foreign currency a purchasing power in China.

Fifth, human factors.

1, we know that hoarding will aggravate inflation to a certain extent, and some merchants hoard goods and buy in large quantities in the state reserve warehouse;

2, the government quota imports, taking white sugar as an example: When Liuzhou quoted 6800 yuan/ton, it was 22 cents/pound in North America and 2/kloc-0 cents/pound in South America, equivalent to 2800 yuan/ton, which could not be imported due to the import quota of the Ministry of Commerce.

Other factors of intransitive verbs

Extreme weather and frequent geopolitical conflicts have reduced supply.