CNBC: China’s Inflation Is Far Lower Than U.S. Inflation. But Chinese Feel The Pinch Anyway

• In July, 83% of more than 900 respondents in China said they felt the impact of inflation, up from 69% in November 2021, according to Oliver Wyman.
• That’s despite a far smaller increase in the Chinese consumer price index versus that in the U.S.
• “It would take a smaller increase in prices to raise concerns among households if the growth backdrop is weaker,” said Ben Simpfendorfer, Hong Kong-based partner at Oliver Wyman.

Chinese people say they’re increasingly feeling the pinch of rising prices, although official data show inflation running at a far lower pace than in the U.S. and other countries.

That’s according to surveys conducted by consulting firm Oliver Wyman and released this month.

In July, 83% of more than 900 respondents said they felt the impact of inflation, up from 69% in November 2021, the report said.

It’s important to remember the surveys measure sentiment and aren’t necessarily a proxy for the consumer price index, said Ben Simpfendorfer, Hong Kong-based partner at Oliver Wyman. He cautioned that responses in China were likely influenced not just by actual price increases but also the overall slower growth environment.

“It would take a smaller increase in prices to raise concerns among households if the growth backdrop is weaker,” he said.

Read the full article on: CNBC.com