Price is a "thermometer" that measures the warmth and coldness of people's livelihoods, as well as a "barometer" for observing economic operations. The 2026 Government Work Report mentioned in this year's main expected development targets that the increase in consumer prices for residents will be around 2%. This goal is not only in line with the actual development of China's economy, but also leaves sufficient space for macroeconomic regulation. The latest price data released by the National Bureau of Statistics for February shows that the Consumer Price Index (CPI) for residents increased by 1.0% month on month and 1.3% year-on-year; The Producer Price Index (PPI) for industrial producers increased by 0.4% month on month and decreased by 0.9% year-on-year, with the decline narrowing continuously. The stable and upward trend of prices, as well as the continuous optimization of the structure, not only confirms the positive trend of China's economic recovery, but also demonstrates the solid foundation for prices to operate within a reasonable range. Prices should neither be too high nor too low, and the target setting for price increases needs to balance people's livelihoods and development. The rapid rise in prices will to some extent suppress residents' purchasing power, especially increase the living burden of low - and middle-income groups, and thus affect the increase in consumption willingness, which is not conducive to the smooth operation of the economy; However, the sustained low prices may benefit consumers in the short term, but in the long run, it will compress corporate profits, weaken investment confidence, and slow down household income growth. A moderate increase of around 2% throughout the year not only ensures the livelihood of the people, but also leaves a reasonable profit margin for enterprises. The rebound in consumption reflects the vitality of domestic demand. The positive changes in February's price data are due to the sustained recovery of domestic consumer demand and the precise implementation of macroeconomic policies. From the perspective of CPI, the Spring Festival holiday has driven the concentrated release of consumer demand, with service consumption becoming the main engine. The prices of travel related services such as airplane tickets and transportation rentals have significantly increased, while the prices of household services such as pet services and housekeeping services have steadily risen, reflecting the upgrading trajectory of residents' consumption from "whether there is" to "whether it is good or not". The core CPI increased by 1.8% year-on-year, which more accurately reflects the solid foundation of domestic demand recovery after excluding the disturbance of food and energy prices. Although food prices have increased with holiday demand, the supply of fresh vegetables and other categories is sufficient and prices are stable, reflecting the significant effectiveness of ensuring the supply and price stability of livelihood goods. The industrial economy continues to improve, releasing positive signals. PPI has been rising for five consecutive months month on month in February, and the year-on-year decline has narrowed for three consecutive months. From the distinct characteristics presented by the year-on-year data, on the one hand, the construction of a modern industrial system is accelerating, and the price resilience of high-tech manufacturing industry is enhancing; On the other hand, the market competition order continues to optimize, and the comprehensive rectification of production capacity governance and "internal competition" in key industries has shown results. The positive changes in the industrial economy have provided support for a reasonable rebound in prices and injected strong impetus into high-quality economic development. At present, China's price operation still faces challenges such as complex external environment and insufficient demand in some areas. However, the fundamental resilience, great potential, and vitality of China's economy have not changed, and favorable conditions for maintaining a moderate rebound in prices are accumulating. On the one hand, the policy toolbox is well stocked. Monetary policy takes "promoting reasonable price recovery" as an important consideration and works in conjunction with fiscal policy and industrial policy. On the other hand, the advantages of a super large market are highlighted. The sustained release of domestic demand potential, the continuous promotion of new urbanization, rural revitalization, and regional coordinated development have provided a solid foundation for price stability. Maintaining prices within a reasonable range is an inherent requirement for high-quality development. Next, we need to continue to make efforts to expand domestic demand and promote consumption, further boosting market confidence; Accurately implement measures to ensure supply and stable prices, and guarantee sufficient supply of livelihood goods; Continuously promote the optimization and upgrading of industrial structure, and consolidate the foundation for the recovery of industrial economy. Looking ahead to the future, with the continuous efforts of macroeconomic policies, the deepening of reform and opening up, and the accelerated cultivation of new quality productive forces, prices will continue to show a moderate upward trend, providing strong support for the sustained improvement of the economy. (New Society)