From Natixis today, “China’s muted inflationary pressure at home contrasts with booming export prices feeding global inflation”:

An obvious reason to explain China’s low inflation rate is the weaker demand which is taking the hit from the Omicron outbreak. As China keeps on with the dynamic zero-Covid strategy, the plummeting mobility is weighing on household’s demand for goods and services and containing investment. Consequently, China’s core consumer price (CPI) inflation was lowered from 1.2% YoY in January to 0.9% YoY in April (Chart 1) although headline CPI inflation did go up from 0.9% YoY in February to 2.1% in April, mainly due to a sharp increase in food prices, which shot up from negative territory (-3.9%) in February to 1.9% in April. All in all, as long as domestic demand remains sluggish, it is hard for core CPI to rise too much for the remaining of the year.

So, when

Keep reading this article on Econbrowser Blog - James Hamilton & Menzie Chinn.

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