CCTV Transcripts

CCTV Script 13/01/22

— This is the script of CNBC's news report for China's CCTV on January 13, 2022, Thursday.

According to data compiled by the U.S. labor department, used vehicles remain an important factor behind heating inflation. Prices of used cars rose another 3.5% in December and were 37.3% higher than a year ago. Last month, prices of new vehicles, apparel, food, and some services were also mounting.

Energy prices, another major factor behind the inflation, recorded a 29.3% annual increase in 2021 but retreated a bit in the last month. However, the warning of extremely cold air has already driven the price of natural gas up which could translate to higher electricity prices, bringing uncertainty to inflation direction for January.

Many other sectors are also sounding alarms of inflation. On Wednesday, about 8,400 workers of Kroger, a supermarket chain, walked off the job, demanding better pay and benefits. And on Thursday a union representing oil workers will also negotiate contracts with Marathon Petroleum Corp. which represents the industry. A higher salary is one of the core issues at the upcoming meeting.

In reaction to the latest inflation data, investors on Wall Street did not panic. The U.S. stock market edged higher in the overnight trading session, but concerns of inflation pushed gold prices up. Fed governor Lael Brainard, the nominee for the vice-chair, states that inflation is too high and controlling inflation is the most important task for the Fed.

Markets are pricing a nearly 80% chance for the Fed to raise interest rates in March. Investors are not only expecting an earlier rate hike but also more hikes this year.

Jamie Dimon

Chief Executive Officer of JPMorgan Chase

"It's possible that inflation is worse than they think and they raise rates more than people think, I personally would be surprised if it's just four increases next year. "

And scholars are warning that now is just the beginning of inflation hitting 7%.

Jeremy Siegel

Wharton School at The University of Pennsylvania, Finance Professor

"It doesn't look to me like inflation has peaked. I think we're going to have another year of 7% inflation like we did in 2021, the Fed has to be more aggressive. "