• A common theme across the global economy since early 2021 has been the acceleration in consumer prices. While major central banks initially argued that these inflationary pressures were transitory, they have persisted, in part due to supply side constraints that remain unresolved. Globally, we estimate that consumer prices rose by around 7.9% yoy in April 2022, while among the seven largest advanced economies (the G7), prices increased by 6.9% yoy – the largest increase since mid-1982.
• That said, prices have not risen uniformly across the globe, with China being a notable outlier. In April, China’s consumer price index rose by just 2.1% yoy. There are a broad range of factors that have contributed to this comparative softness, with some being unique characteristics of China’s economy, while others point to underlying weakness.

For further details, please see the China Economic Update (June 2022)