China's Central Bank: Closely Monitoring Impact of Imported Inflation on Economy
The People's Bank of China (PBOC) noted that rising international crude oil and commodity prices due to recent Middle East conflicts are contributing to an uptick in China's price indicators, emphasizing the need to closely monitor the impact of external imported inflation on the domestic economy. The PBOC affirmed its commitment to maintaining ample liquidity and stable RMB exchange rates.
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- 📰 Published: May 12, 2026 at 15:28
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Central News Agency
(Taipei, May 12, Central News Agency) The People's Bank of China (PBOC) stated that recent Middle East conflicts have led to an increase in international crude oil and some bulk commodity prices, which has contributed to a rebound in China's price indicators. However, it is necessary to closely monitor the impact of external imported inflation on China's domestic economic operations.
According to mainland media reports, the PBOC released its Q1 2026 China Monetary Policy Implementation Report on May 11, stating that in the first quarter of this year, China's economy started strongly, with GDP growing by 5% year-on-year, accelerated growth in production and supply, continued improvement in market demand, and a moderate rebound in prices.
The report stated that favorable conditions for consolidating China's stable and improving economic trend remain abundant. However, recent Middle East geopolitical events have caused international crude oil and some bulk commodity prices to rise, which has played a role in the current rebound of China's price indicators. Still, it is necessary to closely monitor the impact of external imported inflation on the domestic economy.
Since late 2022, China had been in a deflationary cycle, with overcapacity in manufacturing and weak domestic demand leading to fierce price wars. However, official data shows that with the US-Iran conflict driving up costs, the Producer Price Index (PPI) rose by 2.8% year-on-year in April, and the Consumer Price Index (CPI) increased by 1.2% year-on-year.
After US President Trump rejected Iran's response to peace proposals, Brent crude oil futures surged by 4.6% on May 11, approaching $106 per barrel.
The US-Iran conflict has led to continued disruptions in shipping through the Strait of Hormuz, limiting the transportation of crude oil, natural gas, and fuel. The International Energy Agency (IEA) stated that this conflict is causing the largest supply shock in history.
The People's Bank of China reiterated that it will continue to implement moderately loose monetary policy and maintain ample liquidity. It also stated that it will keep the RMB exchange rate basically stable at a reasonable equilibrium level and continue to prevent and resolve financial risks. (Editor: Chou Hui-Ying / Lu Chia-Jung) 1150512
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(Taipei, May 12, Central News Agency) The People's Bank of China (PBOC) stated that recent Middle East conflicts have led to an increase in international crude oil and some bulk commodity prices, which has contributed to a rebound in China's price indicators. However, it is necessary to closely monitor the impact of external imported inflation on China's domestic economic operations.
According to mainland media reports, the PBOC released its Q1 2026 China Monetary Policy Implementation Report on May 11, stating that in the first quarter of this year, China's economy started strongly, with GDP growing by 5% year-on-year, accelerated growth in production and supply, continued improvement in market demand, and a moderate rebound in prices.
The report stated that favorable conditions for consolidating China's stable and improving economic trend remain abundant. However, recent Middle East geopolitical events have caused international crude oil and some bulk commodity prices to rise, which has played a role in the current rebound of China's price indicators. Still, it is necessary to closely monitor the impact of external imported inflation on the domestic economy.
Since late 2022, China had been in a deflationary cycle, with overcapacity in manufacturing and weak domestic demand leading to fierce price wars. However, official data shows that with the US-Iran conflict driving up costs, the Producer Price Index (PPI) rose by 2.8% year-on-year in April, and the Consumer Price Index (CPI) increased by 1.2% year-on-year.
After US President Trump rejected Iran's response to peace proposals, Brent crude oil futures surged by 4.6% on May 11, approaching $106 per barrel.
The US-Iran conflict has led to continued disruptions in shipping through the Strait of Hormuz, limiting the transportation of crude oil, natural gas, and fuel. The International Energy Agency (IEA) stated that this conflict is causing the largest supply shock in history.
The People's Bank of China reiterated that it will continue to implement moderately loose monetary policy and maintain ample liquidity. It also stated that it will keep the RMB exchange rate basically stable at a reasonable equilibrium level and continue to prevent and resolve financial risks. (Editor: Chou Hui-Ying / Lu Chia-Jung) 1150512
Choose to stand with facts, your every sponsorship is the power to protect press freedom.
Download Central News Agency's "First-hand News" APP to grasp the latest news instantly.
The text, images, and audio/video on this website may not be reproduced, publicly broadcast, or publicly transmitted and used without authorization.