China factory prices return to growth after 3 years, beating expectations on surging oil prices

China faces possible inflationary spillovers that could put upward pressure on domestic prices and import costs, though the scale of the risk is unspecified. Massive onshore strategic stockpiling and diversified energy sources act as cushions, lowering near-term odds of a severe inflation shock.

Analysis

China faces possible inflationary spillovers that could put upward pressure on domestic prices and import costs, though the scale of the risk is unspecified. Massive onshore strategic stockpiling and diversified energy sources act as cushions, lowering near-term odds of a severe inflation shock.