Currently, China's agricultural production is affected by natural disasters, and the prices of international bulk commodities are soaring under the accelerated devaluation of the US dollar. The inflation pressure will remain at a high level. Given the further decline in export growth, the government is unlikely to take a one-time appreciation measure. Therefore, it is impossible to rely on a single policy to deal with the inflation pressure. Instead, a combination of tight monetary policy and loose fiscal policy will continue to be adopted. Administrative price limits will also continue, and there will be increased subsidies for agricultural production and urban low-income earners. The RMB will also appreciate faster. In view of the current high inflation pressure and the large amount of central bank bills and treasury bonds repurchase that will expire in March, the central bank may raise interest rates and the statutory deposit reserve ratio this month. The inflation pressure will continue for a period of time, and a single tool cannot work. The government will continue to adopt a combination of policies: Can the government curb the rise in prices soon? This depends on which factors driving the rise in prices are controllable by the government. The current inflation pressure mainly comes from four aspects: First, short-term snow disaster factors. The snow disaster not only caused transportation disruptions and material shortages but also had a significant impact on agricultural production, which may increase the food inflation pressure this year because the rise in China's agricultural product prices has always been caused by supply shocks. Demand growth has always been very stable, but supply fluctuations are relatively large. Once there is a reduction in production, it will cause price increases. Second, the factor of the US dollar depreciation pushing up international bulk commodity prices: The current round of inflation since 2007 has global characteristics, and fundamentally lies in: the US dollar depreciation exporting inflation globally. This round of inflation in bulk commodities and agricultural products started completely synchronized with the US dollar depreciation. In the past five years, the nominal effective exchange rate of the US dollar has depreciated by 35%, while during the same period, the CRB price index reflecting international bulk commodity prices rose by 100% (including energy) and 118% (excluding energy), and the S&P GSCI Agricultural Index reflecting global agricultural/food prices rose by 152%. The inflation pressure brought by the US dollar depreciation is most evident in emerging markets. All major developing countries, including China, have seen their recent inflation pressures continuously rising. This is because the Engel coefficient in emerging markets and developing countries is relatively high (a large part of consumption expenditure is food), and the weight of food in their CPI is relatively high. Moreover, emerging markets generally have a large construction investment demand. Therefore, the inflation pressure brought by agricultural product inflation and the rise in international raw material prices is significantly greater for emerging markets than for developed countries. This imported inflation pressure will not disappear before the US dollar rebounds. Third, cost-push inflationary pressure brought by the rise in factor prices such as labor, land, and resources in China itself. Fourth, the lack of flexibility in the RMB exchange rate becomes the biggest constraint on monetary policy, causing a sustained expansion of money and liquidity surplus for many years. Among the above four factors, the government can only control the exchange rate and factor prices but cannot control the impact of the snow disaster on agricultural production and the imported inflation pressure brought by the US dollar depreciation. Therefore, the inflation pressure will remain high for a period of time. Currently, China's agricultural production is affected by disasters, and the prices of international bulk commodities are soaring under the accelerated devaluation of the US dollar. The inflation pressure will remain high. Given the further decline in export growth, the government is unlikely to take a one-time appreciation measure. Therefore, it is impossible to rely on a single policy to deal with the inflation pressure. Instead, a combination of tight monetary policy and loose fiscal policy will continue to be adopted. Administrative price limits will also continue, and there will be increased subsidies for agricultural production and urban low-income earners. The RMB will also appreciate faster. In view of the current high inflation pressure and the large amount of central bank bills and treasury bonds repurchase that will expire in March, the central bank may raise interest rates and the statutory deposit reserve ratio this month.