The high level of consumer price inflation in China is a poor guide to how the competitiveness of its exporters is changing. Foodstuffs apart, factory gate prices are today rising only slightly faster than in the US. Over the past five years they have risen much less. The implication is that the renminbi’s 24% nominal appreciation against the dollar since 2005 overstates the degree to which export competitiveness has been eroded.
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