China Needs To Be Alert To Inflation Threat - Herald

China needs to be vigilant and avoid high inflation as M2 growth has been relatively high over the past two years and pressure from imported inflation remains, said 21st Century Business Herald in an editorial. The People’s Bank of China said in its Q3 Monetary Policy report that it will monitor the potential for rising inflation, which is possible amid changing global conditions. The Ukraine conflict has disturbed global energy supply and developed economies face persistent high inflation. Though domestic prices have been tamed by weak demand as the Chinese economy continues to recover, China should learn from the U.S. experience where exploding demand demand and excess cheap liquidity provided a hotbed for high inflation, the newspaper said.