Another inflation spike could take hold in the U.S. economy as a result of China reopening its economy from COVID-19 lockdowns, according to one analyst.
KPMG chief economist Diane Swonk and Fitz-Gerald Group principal Keith Fitz-Gerald discuss how investors should interpret the Fed's latest rate hike on"The Claman Countdown."
across the globe. The signs include an unexpected jump in the Spanish inflation rate after a five-month period of slowing price growth, on top of increases in the consumer price gauges in Australia, Japan and Italy. published in January that suggests inflation has become more synchronized globally and is driven by many of the same factors, including housing, energy and transportation. The study indicates that if inflation spikes in several developed nations, it is likely to rise in the U.S.
Emons also predicted that China's tourism will directly influence the next wave of inflation. Before the pandemic locked down most of the world, China was one of the biggest contributors to global tourism. In 2019, Beijing was actually the leading global spender in international travel with 155 million tourists spending more than a quarter of a trillion dollars overseas."There’s clearly a link here between what happens in China and what happens in Japan or Spain or Italy or the U.S.