Inflation across Emerging Asia remains very low, with consumer prices rising by less than 2% y/y in seven of the 14 countries we track. Two of those, Thailand and Singapore, are in deflation, while there are only two countries, India and Bangladesh, where inflation is above 5%. The most recent falls in global oil prices will put renewed downward pressure on prices. And with underlying price pressures still weak, inflation is likely to remain below or within the target range of all of the region’s main central banks this year. With growth set to remain relatively subdued, policymakers will look to keep monetary policy supportive. We expect most central banks will keep policy rates on hold at their current low levels throughout 2016.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services