China’s Role In U.S. Inflation Won’t Be Transitory

 U.S. consumers got used to inexpensive Chinese-made goods. They’re no longer cheap, but the buying hasn’t slowed. A few words from the Fed won’t bring the prices down.

 If Chinese stuff is more expensive, and Americans still want to buy a lot of it, that means inflation will go up. This is a potentially profound development. 

A stronger exchange rate would mean that China is effectively exporting inflation.

John Authers 2 december 2021

https://www.bloomberg.com/opinion/articles/2021-12-02/china-s-growing-role-in-rising-u-s-inflation-depends-on-consumers-not-the-fed