Interivew: Drought's impact on inflation

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For more on the ongoing drought, we are joined on the phone by Professor Xiang Songzuo, deputy director of the International Monetary Research Institution at Renmin University. Hello, Professor Xiang, thanks for joining us.


Q1. Food prices have a major impact on the country's CPI, accounting for one third of the basket of goods used to calculate inflation. What kind of effect can we expect the drought will have on prices?


Q2. China has been largely self sufficient in grain production, making it's impact on the global grain market limited. But if the country is forced to import grain in large amounts, how will world prices be effected?





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