CPI is rising so fast! What should we do?

From meat prices to oil prices, rising prices have begun to affect the lives of some ordinary residents. Is China outside the inflation threshold, or is it already in a period of "severe inflation", or is it just in the stage of overall price increase? What is the price trend this year and next? With the rise in pork prices, the price of eggs rose from 3.8 yuan a few months ago to 4.5 yuan; Five liters of arowana soybean oil rose nearly to 4 yuan, and now the retail price is 49.9 yuan. Whether China's economy belongs to inflation depends on how it is defined. CPI (Consumer Price Index, usually used as an important indicator to observe the level of inflation) is intolerable at around 5%, and the government should strictly control it. In fact, there is no essential difference between CPI above 4% and CPI around 5%. However, it cannot be concluded that China's economy is already in inflation. Can only say that China's economy has been in a state of early warning. Of course, people of different income classes have completely different feelings about rising prices. Ordinary people will directly perceive the extent of price increase from the price increase of pork and rice. In the long run, the price of agricultural products will continue to rise, because agricultural products are basically dependent on the weather, and macro-control measures will not be effective in the short term. This year, the world's climate is abnormal and there are many disastrous weather, which has affected grain production. In the past, China's grain supply was in a tight balance. Now, the prices of agricultural products may continue to rise in the first half of next year. Moreover, the production of agricultural products needs a production cycle, and the cycle from feeding to slaughter is 3 to 5 months. Even if the market is guided to increase supply, it is impossible for products to increase in a short time. Therefore, the prices of agricultural products and food will continue to rise. The previous two CPI's were above 10%, even exceeding 20%, and now it's around 5%, which has caused panic. It seems that the overall price increase this time is very different from the previous two times. The biggest difference between this overall price increase and the previous two inflation is that in the past, inflation was simply driven by commodity shortage, but now there is a situation that some agricultural products are in short supply and most industrial products are in oversupply. For example, the increase in pork prices this time is due to the decrease in the supply of live pigs, because the decrease in supply since last year has not attracted attention. The CPI of inflation in the past two times was above 10%, even above 20%. It is impossible for this to happen now, or there will be big problems in China's economy. In the first two inflation, the government adopted a policy of economic austerity, mainly relying on curbing demand to reduce prices, which is very useful for reducing the core price index. But now the economic situation has changed greatly, and it is impossible to adopt a strict austerity policy because of strict constraints. Important constraints, such as different monetary environment, face enormous pressure of RMB appreciation. In this case, the cost of austerity policy is too high, and it may not be effective, because foreign funds will quickly fill the funding gap formed by domestic austerity. Under the background of current economic integration, the price issue is not only a domestic issue, but also an international balance issue. Just as the rising prices of agricultural products and assets are an international phenomenon, the rising prices of commodities in China will also have an impact on China's product importing countries and upstream raw material exports. The biggest test of rising prices for China lies in whether the social security system in China is in place and whether the income distribution reform can keep up. For the ordinary middle class, they are very powerless in the current economic environment. In the case that their income cannot be greatly improved, the most rational choice is to invest in real estate and stocks, and use the income from investment fields to ensure that their living standards will not decline. Judging from my judgment, the stock market is undoubtedly rising. However, it should be noted that in the process of resource redistribution and wealth redistribution, it will be more distorted because of the bubble. Because money and information are king in the investment field, they are also unfavorable factors for small and medium-sized investors. You can buy funds, such as index funds, to obtain a safe average income. From the perspective of people's livelihood, under the current circumstances, individual strength is unable to cope with the pressure of overall price increase. It is impossible for residents to store a large amount of grain and oil at home as in the agricultural era, but mainly rely on the government's security policy to implement relief. This can be divided into two levels. At the level of economic regulation, the government can guide manufacturers to increase supply and make up for the shortage of goods through the price mechanism. Secondly, subsidies are given to low-and middle-income groups. After the price of meat food rises, the government's meat food subsidies are directly distributed to individuals. Finally, in the context of rising economic prices, it is also a good way to buy assets and share the benefits of rising prices.