inflation-is-asias-problem-not-the-worlds

Inflation is Asia's problem, not the world's

The unsustainable spike in food and energy prices is good news for the rest of the world but, in Asia, inflation is here to stay.
Rising crude oil and food prices are hammering economies worldwide, but runaway inflation is not a serious threat to the global economy, according to an economist at Deutsche Bank. In the developed economies, the opposite could well be true.

Marcel Cassard, Deutsche's global head of fixed income and economics research, says that implied volatility for inflation markets in Europe is pricing in expectations that inflation will return to levels experienced in the 1970s. They are, in other words, very rich, he said at a recent conference in Barcelona.

Asia is a different story, for three reasons. First, food and energy take up a much bigger share of the average person's living expenses. Second, unlike economies...
¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222