China's trade falters as demand wanes at home, abroad amid rising inflation

China's exports and imports lost momentum in August with growth significantly missing forecasts as surging inflation crippled overseas demand and fresh COVID curbs and heatwaves disrupted output, reviving downside risks for the shaky economy.

Exports rose 7.1% in August from a year earlier, slowing from an 18.0% gain in July, official customs data showed on Wednesday, well below analysts' expectations for a 12.8% increase.

Outbound shipments have outperformed other economic drivers this year but now face growing challenges as rising interest rates globally, inflation and geopolitical tensions pummel external demand.

"It seems the export softness arrived in earlier than expected, as recent shipping