Rising Global Inflation and Consumer Prices in the People’s Republic of China
Publication | July 2021
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This note analyzes the potential impact of global inflation and rising commodity prices on consumer prices in the People's Republic of China (PRC) and offers policy recommendations.
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It explains that the risks of spillover from higher global inflation and commodity prices to inflation in the PRC seem limited. However, possible transmission channels include further rises in commodity prices and a shift in inflation expectations in the PRC. The note provides policy recommendations on minimizing inflation transmission channels and containing inflationary expectations.
Contents
- Introduction
- Inflationary Spillovers
- Inflation in the PRC: Main Determinants, Trends, and Prospects
- Policy Recommendations
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