Jone Lorente Salaberria
Asia’s growing inflation pressures have significantly picked up due to the global supply chain disruptions and high commodity prices. Inflation dynamics have been divergent as consumption habits hit differently. Inflation inertia remains high, while housing and transport push is stable, food prices are climbing.
The first half of 2022 is fraught with negative shocks to the Chinese economy. The default of Evergrande Group, mounting geopolitical risks concerns and the sweep of Omicron variant etc. not only brought strong headwinds to economic growth but also resulted in the deterioration of China’s financial vulnerabilities.