China recorded the biggest rise in inflation in almost six months, according to official data released this Wednesday, 11. The rise in prices in the Chinese economy is linked to the restrictions of the zero-tolerance strategy with covid-19 in the country.
In April, Chinese inflation jumped 2.1% year-on-year, according to the local government’s National Bureau of Statistics.
The country has been in almost complete confinement since last month to contain the spread of covid-19 in the population. The measure is even adopted in the largest Chinese city, Shanghai.
Despite keeping the levels of contamination by covid-19 low, the measure affects supply chains and also raises transport prices in the country. Prices for items such as potatoes, eggs and fresh fruit rose in April. In addition, raw material price increases in the global economy also negatively impact inflation in China.
On Wednesday morning, the main Asian stock exchanges ended the day higher, pulled by gains in Shanghai and Hong Kong, due to the rally in technology stocks. China’s inflation also helped to accelerate the pace of capital market business ahead of the release of US inflation figures, the CPI index.