World Inflation Scare Is Coming as Chinese Exporters Lift Prices
Chinese exporters are raising prices on various goods due to increased oil-linked input costs caused by the Iran war, signaling a likely acceleration in global consumer inflation. This marks a reversal from the past few years, when China's export prices had been falling, helping to contain inflation in economies like the US and Europe.
Chinese exporters are increasing prices on goods such as swimsuits, air conditioners, and medical catheters due to rising oil-linked input costs driven by the Iran war. More than a dozen categories of household goods saw sharp year-on-year price increases in March, ending a sustained decline that had helped restrain global inflation. The price hikes are expected to accelerate in the coming months, especially if the Iran conflict continues. Bloomberg Economics estimates that above-3% inflation in 2026 is 'back in play' across the euro area, the US, and the UK. Chinese producer prices have returned to growth for the first time in over three years, and Goldman Sachs expects overall export prices to turn positive. Official data to be released around April 25 will confirm whether export prices were positive in March.
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