In the first half of 2018, the Consumer Price Index (CPI) grew 2 percent, 1 percent lower than the first quarter, which means a moderate upward trend, indicating that the supply and demand of the market is basically flat.

Mao Shengyong considers that the 3.9 percent increase of the Producer Price Index (PPI) not only guarantees a reasonable growth of industrial enterprises’ profits, but also helps to reduce the pressure of transmitting costs on downstream products.