Research On Reasons Of Rising Prices And Measures Of Urumqi

In recent years, China’s economic situation and the market price level occurred dramaticchanges, and the situation that the overall level of consumer prices continued to rise inUrumqi was affected. It produced a lot of living adverse effect. If prices continuing to riseleaded to form general inflation, it not only would devour the wealth of the general population,but it would make our economies suffer a serious blow, resulting in outbreak of socialproblems more serious, and ultimately it affected the entire social harmony and stability,which aroused widespread concern in society as a whole.The paper describes the situation of rising prices of Urumqi, and describes food, housing,and industrial prices of the highest attention in detail, and introduces the impact of risingoverall prices on economic development. On the basis of drawing on the results of researchscholars at home and abroad as well as consultants, the paper analyse leading factors of thegeneral price level rises normatively, and presents five factors which are the money supplyfactors, demand factors, cost factors, structural factors and international factors. Throughanalyzing statistically the consumer price index of Urumqi City in January to December2011,and then this paper analyses how money supply factors, demand factors, cost factors,structural factors and international factors promoted the general price level rose in Urumqi.This paper puts evaluation of the degree about the overall price level, causes and effectsin Urumqi in recent years as the main object of study, analyses normatively the factors leadingto overall price level rising, analyses empirically measures taken by mang countries forstabilizing price rising. By way of horizontal and vertical contrast, this paper Discusses andevalues response measures governing the overall price level to curb price increases abroadand in China in recent years, using comparative analysis method and the comparative study.Based on the detailed research about the operation of Urumqi prices and the analysis ofexisting problems, learning from the research results of scholars home and abroad, paperanalyses comprehensively and in-depth the reasons resulting in rising general price level inUrumqi, and proposes countermeasures to stabilize prices, ensure living standards achieveleapfrog development and the Urumqi Economic and social harmony and stability from acombination of short and long-term perspective.