New Delhi: Moody’s Analytics said inflation in Asia-Pacific economies is expected to ease earlier due to a fall in commodity prices, but country-specific factors could lead to different inflationary outcomes. In a commentary, Moody’s Analytics said a combination of factors such as extreme weather, the COVID-19 pandemic, the lockdown in China and the Russian invasion of Ukraine distorted the global supply chain and inflation. Moody’s Analytics said in a comment that high inflation is troubling as rising prices reduce purchasing power and increase input costs.
“In 2022, this adds to the concern even within businesses and households that have already survived two turbulent years,” Moody’s Analytics said. Many central banks in the Asia-Pacific region have price stability amid their mandates and are scrambling to pull inflation back from multi-year highs by tightening monetary policy. ,Also read: Gold prices rise by Rs 200, check yellow metal prices in your city,
According to Moody’s Analytics, inflation in the region will decline relatively rapidly as commodity prices retreat, but country-specific factors can lead to different inflationary outcomes. ,Also read: Sri Lanka Warns Public Not To Use Cryptocurrencies Amidst Economic Turmoil,
“Our baseline assumption is that energy and food prices will peak over the next few months and then decline; it assumes that the military conflict in Ukraine does not escalate,” Moody’s Analytics said.