Why China's Inflation Is Likely To Stay Below This Level In Next 12 To 18 Months

On CNBC, Jack Siu of Credit Suisse said inflation was expected to remain below the 3% level in the next 12 to 18 months.

"We don’t think CPI is an issue in China" and will remain "steady" within the range of 1% to 3% in the foreseeable future, Siu said. He also noted the country’s central bank was comfortable with this range.

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Regarding the vaccination rate in China, Siu said the vaccination rate of a booster dose in people above the age of 60 was around 68.7% at end of November. There will also be a campaign to boost the vaccination rate going ahead.

There are several countries around the world that haven’t reached this vaccination rate for booster doses but are still open, he added.

A very disruptive transition from the "zero-COVID" policy is likely to take place in the next couple of months and a “consumption boom” is expected after people return to their hometowns for the Chinese new year after three years, according to Siu.

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