Are U.S. and China Experiencing Different Inflation Trends?

Marc Ostwald, Chief Economist & Global Strategist of ADM ISI spoke to CGTN Europe. Consumer inflation in the US has reached a three-year high of 4.2%, driven by soaring energy prices. In contrast, Chinese consumer prices rose only 1.2% in May. Underlying core CPI in the US is at 2.9%, while in China it's at 1.1%. Domestic demand in China remains subdued, but manufacturers are struggling to pass on higher input costs. In the US, services inflation is running hot, and low-income families are feeling the impact of energy costs. The Fed may have to sound a warning about potential inflation issues at their upcoming meeting.