US needs to correct mistakes to address its inflation crisis

Inflation is likely to spread into more sections of the US economy, and it is hard to see the current state of inflation fall back significantly in a short term, according to experts.

The National Development and Reform Commission, China's top economic regulator, recently organized several experts to analyze the price of inflation at home and abroad, the NDRC said in a statement.

The US Labor Department data showed that inflation hit a new 40-year high in May in the US, as the CPI rose 8.6 percent year-on-year.

Experts said the high inflation has affected many facets of the US economy and people's lives, and a recession is now more likely to come to the US economy.

They attributed the high inflation to factors including US trade protectionism, accommodative monetary policy and US-led sanctions.

To better deal with the high inflation, experts said the US government should make more efforts to strengthen international cooperation, remove all additional tariffs imposed on Chinese goods, soften and end geopolitical conflicts and actively participate in the cooperation to fight the COVID-19 pandemic.

Citing insights from an economywide analysis, they said that if the US eliminated additional tariffs on Chinese exports, US consumer inflation rate would decline by more than 1.3 percentage points and average household expenses would decline by $1,200 a year.

ouyangshijia@chinadaily.com.cn