China’s home-grown inflation may be on the way here, along with its exports.
China’s consumer prices shot up 6.5% in October vs. a year earlier, matching decade-high levels set in August, as food costs vaulted.
For the U.S. and other countries, China’s inflation bears watching. That’s because China has played a big role in easing global inflation by manufacturing low-cost goods.
China’s booming demand for raw materials has driven up prices for energy, metals and other commodities. The upside has been that Chinese finished goods prices declined. But, that may be ending.
With all the recalls currently occuring it would seem to me that China’s price of goods may increase just due to the tremendous amount of rework or scrapping the old and making up a batch of good new “stuff”.