Indicators of tremendous resilience, sustained momentum of economy

According to the National Bureau of Statistics, the consumer price index in China rose 2.5 percent year-on-year in June, down 0.1 percent compared with May, while the producer price index was down 3 percent, up 0.4 percent from May.

That the CPI remains stable is mainly because the price of pork, which had been on a steep rise for months due to the outbreak of African swine fever last year, has been generally declining, though with small fluctuations in some places, as the supply is steadily increasing.

The floods in some parts of the country might influence the supply of vegetables. But that will only be temporary.

With the COVID-19 pandemic being largely controlled in the country, both the supply and the demand sides in the market are being stabilized and returning to normal. If all goes well, there will be no need to worry about big fluctuations of the CPI in the second half of the year, which means inflation will continue to fall.

Although the PPI is still falling, its decreasing margin is narrowing fast. Which means market demand is quickly recovering, indicating the confidence of enterprises and consumers is being consolidated, thanks to a series of effective pro-business and pro-consumption policies governments of various levels have taken.

Particularly, the marked rise of the stock markets in recent days directly demonstrates investors' optimism about the prospects of the economy.

Since the pandemic remains out of control in some countries, including in the United States and some countries in Europe and South America, the external influence of the pandemic will continue to be felt to some extent.

But the stabilizing of the domestic market is a good sign that China has overcome the most difficult part of the first wave of the pandemic in both social and economic operation.

More importantly, it has accumulated the experience on both fronts, and thus knows how to do its best if a second wave comes.