Inflation in China Increasingly Driven by Domestic Factors

Christian Dreger and Yanqun Zhang

National Institute Economic Review, 2013, vol. 223, R35-R38

Abstract: The article investigates the determinants of consumer price inflation in China. While inflation has been entirely driven by international factors, such as food and energy prices, in the period preceeding the financial crisis, domestic drivers like monetary developments and nominal wages have become increasingly important since then. Due to tight trade linkages and the presence of Chinese firms in international production chains, the changing pattern is also relevant to other countries.

Date: 2013
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