China’s consumer price index (CPI) increased by 2.0 percent year-on-year and producer price index (PPI) decreased by 2.2 percent year-on-year, according to data published by the Nabional Bureau of Statistics (NBS) on Dec. 9.

Fupeng, chief macro-economic consultant in Yin He Futures said, the year-on-year rebounding of CPI and PPI in November shows that bottoming up sign of eoconomics is turning more and more obvious. The deflation resulted by contraction in aggregate demand in most time of the year has passed. The aggregate demand began to get rid of the period of contraction, driven by external ecoomic stability and internal expansion of infrastructre construction, and turned to steady recovery gradually.

The central bank of China is becomoing more indepent and the role of the central bank has been played to the full. In the past, the single finanicing channel resulted in the weakened target and efficiency of monetary policies. The currently advocated drop of bank loan to social financing portion and the more frequent conduction of opening market operations show the progress of the functions of China’s central bank.