Article 29

BEIJING - The consumer price index（指数）, a main gauge （衡量）of China's inflation（通胀）, was up 1.4 percent from one year earlier in June and rose 1.3 percent in the first half of the year, official data showed on Thursday.

China's economy is likely to stabilize （企稳）and recover （恢复）in the latter half of the year as data suggest economic fundamentals （基本面）are improving（改善）.

Multiple （多个）economic indicators （指标）suggest the worst is over and positive （积极）changes are emerging （出现）due to pro-growth （促增长）and reform policies, the National Bureau of Statistics (NBS) said Monday.

The remarks（讲话） followed Premier Li Keqiang's reassurance （宽慰）earlier this month that continued （继续）macroeconomic regulations and a campaign to promote （推动）innovation （创新）and entrepreneurship （创业精神）would ensure （确保）the country hits（达到） this year's growth target.

The reaffirmation（重新确定） of confidence came ahead of the release （发布）of GDP data for the second quarter on July 15, which analysts predict （预测）will slip （下滑）below 7 percent as the effects of China's pro-growth policies have yet （没有）to spread（扩散）.

UBS chief China economist Wang Tao estimated （估计）GDP growth will ease （放松）to 6.9 percent in the second quarter as the real economy remains sluggish（疲软）.

But as the effects of the country's expansionary （宽松）fiscal （财政）policy and monetary easing （放宽）spread, growth is expected to tick up （上升）in the third or fourth quarter.

In addition to four interest rate （利率）cuts since November, China has decided to remove （消除）its 75-percent loan-to-deposit ratio （存贷比）requirement （要求）to give banks more freedom to lend.

The government has also accelerated （加速）fiscal spending with the approval （批准）of a package of major infrastructure projects （基础建设项目）and an ambitious （有抱负）plan to speed up （推进）improvement of run-down （旧）urban areas.

The policies have already produced （带来）some changes. Earlier data showed China's manufacturing （制造）activity remained in expansion for three straight （连续）months while growth in the services sector quickened（加速）, suggesting continued economic improvement.

Growth of high-tech and consumer products manufacturing continued to beat （领先）overall manufacturing, signaling （标志）success in economic restructuring（结构调整）, while high energy-consuming （能源消耗）industries saw slower growth, according to the data.

The property （房地产）sector is also warming up（回暖）. The sector's fortune（财富） is considered crucial（关键） to the broader economy as it affects （影响）a wide range of industries, including steel and cement.

The average price per square meter （平方米）in a sample （抽样）of 100 cities rose 0.56 percent month on month to 10,628 yuan ($1,739) in June, according to a survey by the China Index Academy (CIA), an independent （独立）research institute.

The gain accelerated （加速）from 0.45 percent in May, which was the first rise since January.

Other recovery signs include an increase in power consumption（用电）, faster credit （信用）growth and higher prices of some raw （原始）materials.

"This shows that market demand is bottoming out（触底）, and China's economic growth will see mild （小幅度）recovery in the latter half to put it on track （回到正轨）to meet this year's growth target of around 7 percent," noted Lian Ping, chief economist at the Bank of Communications.

While recognizing （认识到）the improving trend, NBS spokesman Sheng Laiyuan cautioned （警告）that some improvements are still fragile （脆弱）and tentative（暂时性）. He said the country should remain watchful （观察）of downward pressure and make stronger efforts to achieve the annual （年）growth target of around 7 percent for this year.