Inflation in Asean easing, seen converging towards central-bank targets by end-2023

INFLATION in major South-east Asian economies appears to have peaked: Cost pressures are receding and monetary policy tightening has helped cool aggregate demand, economists said.

Latest available data shows headline consumer price index (CPI) falling in recent months across the Asean-6, a grouping that includes Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.

“A high base from a year ago, when oil prices spiked from the Russian invasion of Ukraine, certainly contributes to the moderation in recent CPI readings,” said Moody’s Analytics economist Denise Cheok.