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China inflation | South China Morning Post

Latest news and updates on impact of inflation on consumers in China.

Paper Prices Continue to Rise in China Due to Higher Cost of Raw Materials

Paper Prices Continue to Rise in China Due to Higher Cost of Raw Materials Paper prices have taken a sharp rise in China recently, with some companies upping prices five times in a month. The soaring price has become a most searched topic on China’s Internet. Major printing paper companies and traders issued a number of notices of price adjustments in May after the price of printing paper increased by approximately $31.34 per ton. The increase for white cardboard was even higher. Nine Dragons Paper, a leader in the packaging paper industry, raised prices five times in May. The price adjustments became more frequent in the second half of the month, with increases on May 17, 19, and 24. More than 40 paper companies in Hebei, Henan, and Shandong provinces followed suit immediately.

How Will China Respond to Rising Inflation?

Advertisement Chinese inflation fears are on the rise due to increasing commodity prices. This has resulted in an increase in producer price inflation, while consumer price inflation remains under control since the economy has not fully picked up speed after the COVID-19 crisis. Since consumer price inflation is not taking off and consumer spending is still underperforming, the central bank is unlikely to remove liquidity from the economy. Commodity prices have been rising throughout the global economy as depleted inventories after COVID-19 have led to massive inventory restocking as businesses open again. Shipping bottlenecks have pushed up prices of tin and sugar. Low interest rates have resulted in a remodeling boom in the United States, adding to demand for lumber and copper. A drought in South America has constrained the supply of corn as demand for corn-based ethanol is rising. All of these factors have resulted in rising commodity prices, which have increased producer prices

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