Beijing/Mumbai: Renewed virus restrictions across Asia have weakened consumer spending, but inflation may keep ticking higher in some of the region s biggest economies.
China s consumer prices will climb an estimated 80 basis points next year, the most in Asia, followed by Indonesia seen observing an increase of three quarters of percentage point, according to economists surveyed by Bloomberg. Analysts see the biggest price falls in the Philippines, where inflation is seen easing 1.2 percentage points.
Diverging inflation paths will determine the different paces at which Asia s monetary authorities start to wind down pandemic-era stimulus. In South Korea, where a gauge of consumer prices ran at 2.4 per cent last month, the central bank is expected to start raising interest rates this year. The Reserve Bank of Australia is seen hiking in 2023.
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