Asian inflation could hit highs seen elsewhere; central banks to step up in H2 2022: analysts

INFLATION in Asia has largely trailed the recent highs seen in other markets, but could climb to similar levels this year on surging commodity prices, prompting firmer central bank action, some analysts warn.

Emerging markets are expected to face mounting inflation, and “for many of these, inflation rates will rise to, or even exceed those of the West, reflecting shortages of food, gas, metals, and oil”, said Rob Carnell, regional head of research for the Asia-Pacific at ING.

Asian central banks are expected to tighten the screws accordingly, as consumer costs – earlier dampened by pandemic shutdowns and government subsidies – rise on food and fuel expense spikes.