China's Growth Faces Pressure From Reflation And A Narrowing Trade Surplus
2026-04-16 09:09:00 ET
By Lynn Song, Chief Economist, Greater China
Iran war will give China’s reflation story a nudge in the right direction
China’s reflation story is picking up steam. After years of struggling with deflationary pressure, China’s inflation looks like it’ll be solidly in positive territory this year. PPI inflation returned to positive levels in March, the first time since 2022, while CPI inflation has stayed above 1% for two consecutive months. Upward price pressures will likely persist, as higher energy prices are already showing in the data....
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