According to analysts at Goldman Sachs, core inflation in Asia is expected to keep accelerating next year but the pace of increase will be lesser than that to be seen in Latin America and Europe.

Key quotes

“We do not expect inflationary pressures to accelerate so sharply that they drive large rate hikes.”

“Expect consumer price indexes to rise above consensus estimates in 2022, with higher food prices also driving this jump.”

“Asian policymakers will face less pressure to act, with the region being spared the eye-watering spikes seen in other emerging and developed economies, mainly due to more stable exchange rates and less supply-side damage.”