China Caps Fuel Price Hike Amid Iran War Energy Shock, Fearing 'Bad Inflation'

• China eases planned retail fuel price hike, capping increases to shield consumers from surging costs due to the Iran war.
• The National Development and Reform Commission (NDRC) limited petrol and diesel price rises to roughly half of what they would have been.
• This rare intervention, not seen since 2013, signals growing concern over inflationary pressures and consumer affordability.
• Economists warn of 'bad inflation' driven by rising input costs rather than demand, potentially squeezing corporate profits and wages.
• Higher oil prices could push China's producer price index (PPI) back into positive territory, but consumer price impact is expected to be muted.