Shuli Ren, Columnist

China Can Teach the West a Lesson on Inflation

Consumer prices are surging in the U.S. and Europe, but in China, food and energy costs are becalmed.

April 13, 2022 at 7:10 PM UTC

Shuli Ren is a Bloomberg Opinion columnist covering Asian markets. A former investment banker, she was a markets reporter for Barron’s. She is a CFA charterholder.

Food inflation is under control in China.
Photographer: Xinhua News Agency/Xinhua News Agency

Provide news feedback or report an error

Site feedback:

Take our Survey

This article is for subscribers only.

Judging by the latest inflation numbers, developed nations are turning into emerging markets. The U.S. reported 8.5% year-on-year jump in March, while inflation in the U.K. soared to 7%, a 30-year high. Meanwhile, Chinese consumers saw only a 1.5% rise in prices last month.

This is not how it’s supposed to work. If anything, inflation should be more pronounced in emerging markets, where logistics are less streamlined and commodities traders have fewer hedging tools.