Asian markets are deep in the red after China reported that consumer prices rose at their fastest pace in two years. Inflation in the world's second largest economy accelerated to 2.7% in July.

That's relatively low in global standards, but it's the most since July 2020. It shows that China is dealing with the effects of persistent supply chain bottlenecks and higher oil prices. But it would have been even higher if not for pandemic-related lockdowns keeping down consumer spending.

For more on consumer prices in China and the US, we spoke to Craig Erlam, who is a senior market analyst at OANDA in London.

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