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Reopening’s impact on inflation in China and abroad

The shift toward living with COVID will put some upward pressure on prices in China. But the uptick in inflation will not be as large as that seen in many other countries as they emerged from COVID controls over the past couple of years. While the initial wave of infections in China has caused some disruption to manufacturing, and the eventual post-reopening rebound in Chinese demand may keep the global energy market tighter for longer, we do not foresee a big impact on inflation overseas.

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