Govt doses needed to best revive economy

The consumer price index (CPI) and the producer price index (PPI) both fell in February, raising concern all round that the economy could enter into a worrisome deflation.

The National Bureau of Statistics has said that the 1.6 percent year-on-year drop in the CPI in February was the first in six years. For the record, the PPI dropped 4.5 percent year-on-year last month.

But the drops in the CPI and PPI should not shroud our optimistic look about the economy because it is already showing obvious signs of recovery owing to the government's proactive fiscal and moderately loose monetary policies and its plans to revive 10 major industries. Besides, the continuous growth in banking loans and encouraging major indices emerging from the manufacturing sector, which has suffered a setback, indicate market fluidity is good in the country. This is important because the global financial crisis has created a fluidity panic in a lot of countries.