China's inflation stays low as an energy shock lifts prices elsewhere (opens the source in a new tab)
- In a Mint column, economists Puneet Kumar Arora and Jaydeep Mukherjee note China's retail inflation was just 0.9% in September 2026, against 3.7% in the US, 3.8% in the eurozone and 5.5% in India, despite the West Asia energy shock.
- Oil reserves and the shift to electric cars helped, but they argue weak demand matters more: housing is about 70% of household assets, and while factory-gate prices rose 5%, core consumer inflation stayed at 1%.
- With retail sales up 1.1% and exports up 14.6% this year, they warn China may export its disinflation, easing prices abroad but stoking trade fights.
- 0.9%
- China retail inflation, Sept 2026
- 5%
- factory-gate inflation, Sept
- 70%
- of household assets in housing
Why it matters Cheap Chinese goods can soften inflation for India and the US, but they also squeeze local manufacturers and invite tariffs.
Other side Factory-gate prices are already climbing fast; if energy stays dear, those costs could reach Chinese shoppers and turn exported disinflation into exported inflation.
Source:Mint (free to read) ↗