- Inflation is rising in a number of advanced and emerging economies.
- Relative to other regions, Asia has managed to keep levels relatively low.
- However, the persistent impact of high shipping costs could change this.
New analysis shows how increases in shipping rates have a persistent impact on consumer prices.
As the world economy recovers from the pandemic, inflation is mounting in advanced and emerging economies. Pent-up demand fueled by stimulus and pandemic disruptions is helping accelerate inflation, spread around the world through global factors like higher food and energy prices, and soaring shipping costs.
The chart of the week shows how Asia’s inflation has been more moderate versus other regions, affording central banks room to keep interest rates low and support economic recovery. However, Asia’s tepid price gains may see greater momentum next year. The outlook…