IMF Still Waiting for China’s Inflation to Show It’s Coming Back

China is seeing signs of a return of inflation as the Iran war pushes up energy costs but will need more sustainable price gains to fully turn around deflationary pressures, according to an International Monetary Fund official.

“If you look at inflation, certain numbers have come up,” Krishna Srinivasan, the IMF’s Asia-Pacific director, said in an interview on Bloomberg Television with Haslinda Amin on Thursday. On whether China is experiencing reflation, he added that while there have been some signs of that, “I would want to see it on a more durable basis before I can say anything more firmly.”