Producer prices are rising rapidly as the extraordinary surge in global demand for consumer durables during the pandemic has led to bottlenecks in supply. But the People’s Bank is right to not be too concerned about the implications for domestic inflation. There are no signs of broader price pressures or overheating in the labour market, for example. And export demand is unlikely to remain this strong indefinitely.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.