Stable CPI shows China on way to quality growth

A key meeting of the Political Bureau of the Communist Party of China Central Committee on Tuesday signaled that China will focus more on maintaining the stability of the economy in the second half of this year amid external uncertainties.

Some are worried that to prop up China's economy, the more proactive fiscal policy and rising investment in infrastructure will eventually lead to rising commodity prices and affect ordinary people's livelihood. But the policymakers' decision to resolutely deleverage should ease such concerns.

According to the official data, the national consumer price index increased 2.0 percent in the first half of 2018. And although the CPI increased by 0.6 percentage points year-on-year, it was still at a comparatively stable level. The nationwide per capita disposable income was 14,063 yuan ($2,059) in the first six months, up 8.7 percent year-on-year. The actual increase in per capita disposable income, after deducting the price factor, was 6.6 percent, reflecting a stable growth trend.