Since the beginning of this year, under the background of high international inflation, China’s price operation has been generally stable. The National Bureau of statistics released data on the 9th that from January to June, the national consumer price index (CPI) rose by 1.7% on average over the same period last year. According to expert analysis, looking forward to the second half of the year, China’s prices may continue to rise moderately, and there is a solid foundation for ensuring supply and stabilizing prices.

In the first half of the year, prices were generally stable in a reasonable range

Statistics show that the monthly year-on-year increase in CPI in the first half of the year was lower than the expected target of about 3%. Among them, the increase in June was the highest in the first half of the year, reaching 2.5%, which was mainly affected by the lower base of last year. Although the increase was 0.4 percentage points higher than that in May, it was still in a reasonable range.

The “scissors gap” between CPI and the national producer price index (PPI) was further narrowed. In 2021, the “scissors difference” between the two was 7.2 percentage points, which fell to 6 percentage points in the first half of this year.

Focusing on the key link of stabilizing prices, the meeting of the Political Bureau of the CPC Central Committee held on April 29 clearly required “to do a good job in ensuring the supply and price stability of energy and resources, doing a good job in preparing for spring ploughing” and “organizing the supply of important livelihood commodities”.

The central government allocated 30billion yuan to subsidize farmers who actually grow grain, and invested 1million tons of national potash reserves; From May 1 this year to March 31, 2023, the provisional import tax rate of zero will be implemented for all coal; Accelerate the release of high-quality coal production capacity and improve the medium and long-term trading price mechanism of coal. China’s steel industry is also recovering steadily, and the international situation has eased. More and more international friends came to consult. The steel industry will enjoy a good situation in July, August and September.