China inflation: Li Keqiang says 'prudent' economic policy, bumper wheat harvest leaves room to tackle risks | South China Morning Post

China has room to manoeuvre on monetary policy and will see a bumper wheat harvest this year, leaving it well placed to tame inflation and meet food security needs, Premier Li Keqiang has said. China's economic situation contrasts with the United States, which reported inflation at a 40-year high of 8.6 per cent last month, while forecasts of a recession are growing after the Federal Reserve hiked rates by their biggest margin since 1994. Li's comments on Tuesday underline the rationale behind Beijing's refusal for large-scale monetary loosening, despite an economic slowdown owing to its zero-Covid strategy . "We have…