Mideast oil crisis revives stagflation spectre, haunting China’s deflation battle
South China Morning Post
by Xinyi WuMarch 4, 2026
Rising energy costs driven by Middle Eastern geopolitical tensions may provide some relief to China’s years-long struggle with weak prices, but analysts warn that a spike in oil prices could spark a scenario in which stagnant economic growth collides with rising inflation, hindering the nation’s economic recovery.
“Rising oil prices [could] lead to stagflation, which helps increase the inflation rate but also leads to a decline in economic growth and an increase in unemployment,” said Su Jian,...
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Originally published on South China Morning Post on 3/4/2026