In the U.S., Consumers Are Paying More for Everything. In China, the Inflation Problem Is Very Different

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In the U.S., Consumers Are Paying More for Everything. In China, the Inflation Problem Is Very Different
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Persistent inflation in China narrows the window for when the People’s Bank of China can cut rates and support growth, economists said.

"Rising inflation, if [it] continues, could further limit China's room for policy maneuvers," Pang said.

China will adjust monetary policy"when appropriate" to support growth, Premier Li Keqiang said at a meeting last week of the State Council, the top executive body.The producer price index rose by 8.3% in March, slower than the 8.8% increase in February and the lowest since April 2021, according to Wind data. Coal and petroleum products contributed some of the largest gains.

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