The surge in GDP growth in the second quarter has encouraged fears that the Chinese economy is about to overheat. However, there is still little hard evidence of an inflation problem. The monetary data suggests that consumer price inflation might rise to 3% or so by the end of the year, but that would still be a comfortably low rate, and no higher than existing official forecasts. We would also expect this to be the peak for inflation in this cycle. Worries that further increases in interest rates will cause a “hard landing” are certainly misplaced.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services