China’s Economic Reopening Complicates the Global Fight Against Inflation

China’s Economic Reopening Complicates the Global Fight Against Inflation

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https://www.wsj.com/articles/chinas-reopening-complicates-global-fight-against-inflation-11674344924

Stronger Chinese economy will boost demand for commodities but could ease supply-chain bottlenecks, sending mixed signals for central bankers

HONG KONG—Just when signs point to easing inflation worldwide, China’s economic reopening after years of strict pandemic controls is raising questions about whether it could spur costs higher again.

Many economists aren’t too worried, but say the initial uncertainty will complicate matters for the Federal Reserve and other central banks that have been raising interest rates to fight inflation by slowing economic growth.

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