Most Beijing residents say prices 'too high to afford'

14:46, July 07, 2011      

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More than 60 percent of Beijing residents think that the current consumer prices are "too high to afford," according to a second-quarter questionnaire survey report covering 1,400 depositors in the city released by the business management department of the People's Bank of China, the country's central bank, on July 4.

More than 50 percent believe consumer prices will continue to rise

According to the report, Beijing's Consumer Price Satisfaction Index reached 18.1 in the second quarter, down 2.8 points from the first quarter and down 1.1 points from the same period of last year. More than 64 percent of respondents think that the current consumer prices are "too high to afford," up 4.5 percentage points from the first quarter.

More than 35 percent consider consumer prices "acceptable," down 3.2 percentage points from the first quarter. In addition, there were high inflation expectations among the respondents, with more than 50 percent believing that the consumer prices will continue to rise in the next three months.

High inflation reduces people's willingness to consume

Due to high inflation expectations, Beijing residents became less wiling to consume in the second quarter. Only around 21 percent of respondents are willing to "consumer more."

With lower consumption willingness, 43 percent of residents surveyed said that they would make more investments under the current price level and interest rate, 0.2 percentage points higher than the previous quarter. About 36 percent of Beijing residents surveyed preferred to save more money, 0.2 percentage points higher than the previous quarter. Of them, 24 percent preferred to use deposits to buy big-ticket goods, which was 4.2 percentage points higher than the previous quarter, and 38 percent preferred to use deposits to buy stocks, bonds and funds.

Spending money as early as possible because of depreciation

Miss Shi works at a Beijing-based publishing house and is a typical member of the "moonlight clan," who spend all their earnings before the end of each month. "I do not spend extravagantly, and the current price level is too high," she said.

Shi said that her monthly after-tax income stands at 6,300 yuan after deducting all types of benefits and is largely used for rent and food. She also puts aside part of income for future travels. She likes to go shopping and walk around during weekends, but she finds that a common T-shirt will cost her about 100 yuan and a stylish skirt at least 400 to 500 yuan.

Shi used words "changing with each new day" to describe the current price level. "The rise in my salary will surely fail to keep up with that in CPI," she said. She said she will continue to be a "moonlight clan" member, because she had better spend up her salary to avoid depreciation of deposits.

By People's Daily Online

 
 
     
 
 
 
     
 
 
 
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(Editor:叶欣)

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