“For years, low prices on China-sourced goods helped dampen inflation in the United States. Now China’s efforts to boost domestic consumer spending, reducing reliance on exports, are leading to higher costs for multinationals that manufacture goods there. Eventually, China could export its inflation.
Yum, the No. 1 Western restaurant brand in the world’s fastest-growing major economy, generates a third of its profit from China. It said its full-year margins will dip this year, citing labor inflation in the mid-to-high teens.”
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