China’s reopening might increase world progress — and worsen inflation

China's reopening could boost global growth — and worsen inflation


China’s swift reopening after nearly three years of strict coronavirus controls could provide a much-needed boost to global economic growth, but may also stoke inflation just as it has shown signs of falling back.

The revival of the world’s second largest economy — and its biggest consumer of commodities — threatens to push up global prices for fuel, industrial metals and food this year.

Since the beginning of January, prices for copper, aluminum and zinc have all had their best start to a year in 11 years, rallying by an average of 13%, analysts at Deutsche Bank told CNN, citing data from the London Metal Exchange. Tin, which is largely used to make electronics, has soared 30%, its biggest rise in 32 years.

“There’s a tremendous amount of pent-up demand that we do expect to come back to markets, specifically after Chinese New Year,” Nicky Shiels,…