If China’s growth is so strong, why is inflation so weak?
A paradox that has analysts snickering
When America unshackled its economy from pandemic-era restrictions two years ago, it also unlocked inflation. By mid-2021, consumer prices were rising by more than 5% compared with the previous year. China’s later, faster reopening is now more than three months old. But inflation remains locked down. Consumer prices rose by only 0.7% year-on-year in March, slower than anywhere else in the world.
This article appeared in the Finance & economics section of the print edition under the headline “Priceless recovery”
Finance & economics April 29th 2023
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