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China’s Economic Risks Build as Delta Variant Spreads

In the second half of the year, China’s growth has slowed down and economic risks are building as the inflation pressures are picking up.

On Monday, a report showed in July, factory-gate inflation surging to 9% as commodity prices climbed and core consumer prices rose the most in the last 18 months. These consumer prices included volatile food and fuel costs.

The spread of the delta variant of coronavirus is the main cause of inflation in the country. During this inflation, Goldman Sachs Group Inc. has downgraded its forecast for the third quarter and entire year.