(NBS) China’s inflation rose by 2.1% in April from the prior year, compared to 1.5% in March and higher than estimates of a 1.8% gain.
The producer prices also accelerated, jumping by 8% from the prior year, although this was lower than 8.3% in March and was above estimates of a 7.8% gain.
The rise in inflation reflected rising food prices as people stockpiled supplies in the wake of a constrained supply chain amid Covid-19 lockdowns. High global commodity prices also played a role.
Pinpoint Asset Management president and chief economist Zhang Zhiwei said that consumers stocked food due to panic buying, which pushed up demand. He says the inflation pressure will fade once the supply disruptions resolve.
Despite the jump in inflation, Zhang says the concern for the government is balancing measures to contain the virus outbreaks with the risks of economic slowdowns.
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