Although China denies it, its draconian Zero-COVID lockdown policy is pushing up the cost of Chinese manufacturing as well as global production costs and inflation.
China’s three major indicators of its Purchasing Managers’ Index (PMI) all fell below the critical mark in March.
However, while both ends of production and demand were falling at the same time, the price index continued to rise. In particular, the purchase price index and the ex-factory price index for major raw materials increased by 6.1 percent and 2.6 percent respectively.
Being the world’s factory, China’s rising ex-factory price index will push up global production costs and exacerbate global inflation.
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