Shanghai may see its gross domestic product grow about 10% this year, higher than the 8% target set at the beginning of the year, Shanghai Daily reported, citing Mayor Han Zheng on Tuesday.

The city's gross domestic product increased 12.7% in the first half of this year, after peaking at 15% in the first three months.

Growth of retail sales in Shanghai was stronger than growth in fixed assets investment in the first half, signifying a rise in domestic consumption. Local fiscal revenue rose 23.3 % year on year, and the city targets a whole-year fiscal revenue growth of 8%.

Consumer price index, the main gauge of inflation, increased 2.2 % in the first half, compared with a 2.6% growth nationwide.

Han said the city will endeavor to curb the inflation, by boosting supply of food and affordable housing.

The city eyes to build 12 million square meters of affordable houses by the end of year, or 60% of the city's yearly target. Of that, 4 million square meters will be budget houses.