How China Is Serving to to Damp International Inflation

HONG KONG—As China’s factory-gate costs soared this yr, traders nervous the nation would change into a brand new supply of inflation for the remainder of the world.

As an alternative, the world’s second-largest economic system has helped alleviate some worth pressures attributable to the pandemic, and seems more likely to hold doing so—at the very least for some time.

China’s personal economic system is much from overheating. So it isn’t actually a primary driver of the demand that’s pushing up costs of commodities and client items world-wide, economists say.

And whereas some Chinese language factories have handed on worth will increase to Western patrons this yr, many are additionally absorbing increased prices for uncooked supplies like copper and iron ore themselves.

That has helped stop consumer-goods costs from rising even increased elsewhere, although it has additionally meant decrease earnings for some Chinese language manufacturing unit homeowners.

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