China's inflation surge signals economic shift as geopolitical tensions fuel price pressures. Consumer prices jumped 1.2% in April, beating economist forecasts of 0.9%, while producer prices climbed 2.8% year-over-year, marking the fastest pace since July 2022. The Iran conflict's disruption of Strait of Hormuz shipping has triggered a global energy shock, with crude oil prices surging 19.3% and industrial metals soaring. Non-ferrous metals mining prices climbed 38.9% while oil and gas extraction costs rose 28.6%. Beyond energy, AI-driven demand for computing infrastructure is pushing equipment prices higher. Holiday spending during Qingming and Labour Day celebrations further boosted consumer activity, with retail sales rising 14.3% year-over-year.
