Regional consumer prices held down by government subsidies, stable rice prices

CONSUMER prices in Asia have been shielded from the worst inflationary pressures by factors such as government subsidies and restrained demand, though this could change as spending rebounds and commodity prices soar, said economists.

Though prices have been rising, “inflation is substantially lower and more manageable in the region than in other parts of the world”, said Abdul Abiad, macroeconomic research division director at the Asian Development Bank (ADB).

Headline inflation in March reached 5.7 per cent in Thailand, 5.4 per cent in Singapore, 4.1 per cent in South Korea, and 4.0 per cent in the Philippines.