Citi flags “bad inflation” as China inflation rebound led by supply
Citi economists say China’s supply-driven inflation rebound resembles “bad inflation.” They note headline readings held up and could stay solid in nominal terms, but CPI and PPI gains were largely driven by global factors.
Citi economists said the rebound in Chinese inflation is closer to “bad inflation” than a healthy pickup, as the headline readings held up and improved. They said nominal readings could remain solid, but the rise in both CPI and PPI was almost entirely driven by global factors.