While inflation shows signs of resurgence in the United States, many economies across Asia are grappling with weakening price momentum. Excluding outliers such as Japan and Bangladesh, the mean inflation rate among the continent’s ten largest economies stands at a modest 1.3%. Notably, consumer prices have declined in major economies like China and Thailand. Countries including the Philippines are approaching deflationary territory. Even India, historically prone to higher inflation, recorded just a 1.6% rise in prices in the 12 months through July—the lowest since 2017. Although inflation in several Asian nations remains within the desired ranges set by central banks, five of them now report rates below target. In those where inflation is still aligned with policy goals, the prevailing trend points toward continued disinflation.
— news from The Economist
— News Original —
The threat of deflation stalks Asia’s economies
Just as the inflationary heat is rising again in America, much of Asia is feeling a chill. Leave aside the hotspots—Japan and Bangladesh—and the average rate across the continent’s ten biggest economies is a tame 1.3%. Consumer prices have fallen outright in China, the biggest of all, and in Thailand. Other Asian economies, including the Philippines, are not far from deflation. Even in inflation-prone India prices rose by just 1.6% in the year to July, the slowest rate since 2017. In some Asian economies inflation is within central bankers’ target ranges. But in five it is now below these, and even in on-target countries the trend is disinflationary.