Container cargo at the Pasir Panjang terminal port in Singapore. (AFP/VNA Photo) Kuala Lumpur (VNA) - Inflation in the Association of SoutheastAsian Nations (ASEAN) is expected to moderate faster than that in thedeveloped economies, ANZ Bank chief economist Sanjay Mathur has said.
According to the economist, inflation in the region was seenmore as a result of a commodity price shock, and not due to the labourshortage, which is rather acute in developed economies.
He said that the measures taken to tackle inflation by the economies could notbe the same as the nature of inflation is different.
In the US, the measures were more aboutcurtailing demand that has taken place, therefore it was more through theinterest rate cycle, he told the press on the sidelines of the ASEAN FinanceInnovation Summit on February 8.
Regarding the monetary tightening exercise in the region, henoted that the bulk of the exercise was completed with only a few nationsprojecting for rate hikes, including the Philippines and Thailand.
As for Malaysia, there is no further need for it to do because the Central Bank ofMalaysia had already concluded its tightening cycle, the economist said, addingthat the country’s inflation is just over 3%, which is quite manageable.
On moving into targeted subsidies as what the governmentplanned to do, he said it would certainly push up prices.
Commenting on Malaysia's pandemic measures, he lauded theincome subsidy schemes by the government plus support to the corporate sectorbut over the longer term, the fiscal consolidation must continue to be strengthened,Sanjay Mathur said./.
