China's Inflationary Pressures Likely to Stay Contained in 2027
Dow Jones
Yesterday
0608 GMT - UOB expects China's inflationary pressures to remain contained in 2027, with PPI and CPI projected to increase by 1.0% and 1.1%, respectively. While escalating tensions in the Middle East could exert upside pressure, weaker global demand could exert downward pressure on prices, says economist Ho Woei Chen in a report. Chen attributes the moderate rise in August inflation to higher oil prices. PPI remains closely linked to global oil and commodity price trends, while consumer inflation continues to be constrained by subdued consumption demand and persistent declines in food and accommodation costs, Chen says. UOB maintains its 2026 forecasts for PPI to rise 2.5% and headline CPI to rise 0.9%.
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