China's Supply-Driven Rebound in Inflation Masks Sluggish Demand
Dow Jones13:56
0556 GMT - The supply-driven rebound in Chinese inflation is more akin to "bad inflation," Citi economists write in a note. The headline readings held up and improved, and nominal readings could stay solid as such, they say. Yet, the rebound in both CPI and PPI was almost fully driven by global factors, including energy and gold prices and the AI capex cycle, they add. Domestic demand remains sluggish amid cost-push inflation, they add. Citi remains cautious about China's inflation outlook as it hinges largely on global factors, especially energy prices. Domestic factors still call for more policy support should the energy shock subside, it adds.
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