Study On Price Fluctuations Of Agricultural Products In China From 2006 To 2009

Agriculture is the basis of our national economy. Its foundation status in the overall national economy and the important role it plays determines the importance of agricultural products. As necessities of life, agricultural products' prices have been the focus of attention. Since the fourth quarter of 2006, China's agricultural price has showed a clear upward trend. However, from the forth quarter of 2008 to the first quarter of 2009, it has dropped to some extent, which is influenced by international financial crisis. Agricultural price and people's daily life are closely related. The sharp fluctuations in price of agricultural products have greatly impacted not only people's daily life, but also social economy. Therefore, studying the impact of price fluctuations of agricultural products, the causes and countermeasures has a very important practical significance. The price volatility of agricultural products in China is the object of this paper. First, we introduce the current situation and features of price fluctuations of agricultural products since the fourth quarter of 2006, and analyze the impact of fluctuations, which includes the impact on inflation, the impact on the income of the farmers and the impact on consumption expenditure of residents. Then, we focus on specific reasons for fluctuations in the price of agricultural products. The perspective of research includes the relationship between supply and demand of agricultural products, the money supply factors and international factors. Finally, combined with the actual situation in China, we raise countermeasures which are in favor of reducing volatility of the price of agricultural products.