Official economic dogma is that inflation is caused by pay rises. This has always been self-serving nonsense, but it's particularly unhelpful now because it disguises the real causes of commodity inflation - which is a combination of supply/demand shocks that spike the prices of essential commodities, combined with loss of trust in national currencies, often made worse by foreign debt obligations.
(Asset price inflation is a different thing, and is caused by too much cheap money pumping up the cost of rent-seeking assets - which happened after 2008. If you're on the wrong end of the rent-seeking process it's still price inflation, but it's usually considered a good thing rather than a bad thing in official figures.)
It should be obvious that there's a danger of at least some of the above. Down-to-the-bone commodities like food and medical supplies will become more expensive, and there may be some spill-over into industrial commodities.
Luxury and "entertainment" commodities - which have driven the Chinese economy - are going to take a severe hit, because part of their customer base is going to be wiped out financially.
Rent-seeking assets are probably going to have a bad time too. As is bricks and mortar retail. I'd expect a wave of bankruptcies and default among landlords at all level. Even those who own property free and clear may struggle.
tl;dr: A rebalancing away from luxury/investment/speculation towards basic essentials, which will spike in price, with a lot of collateral damage at all levels.
Official economic dogma is that inflation is caused by pay rises. This has always been self-serving nonsense, but it's particularly unhelpful now because it disguises the real causes of commodity inflation - which is a combination of supply/demand shocks that spike the prices of essential commodities, combined with loss of trust in national currencies, often made worse by foreign debt obligations.
(Asset price inflation is a different thing, and is caused by too much cheap money pumping up the cost of rent-seeking assets - which happened after 2008. If you're on the wrong end of the rent-seeking process it's still price inflation, but it's usually considered a good thing rather than a bad thing in official figures.)
It should be obvious that there's a danger of at least some of the above. Down-to-the-bone commodities like food and medical supplies will become more expensive, and there may be some spill-over into industrial commodities.
Luxury and "entertainment" commodities - which have driven the Chinese economy - are going to take a severe hit, because part of their customer base is going to be wiped out financially.
Rent-seeking assets are probably going to have a bad time too. As is bricks and mortar retail. I'd expect a wave of bankruptcies and default among landlords at all level. Even those who own property free and clear may struggle.
tl;dr: A rebalancing away from luxury/investment/speculation towards basic essentials, which will spike in price, with a lot of collateral damage at all levels.