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Asian Inflation Allows Rate Pause, Unlike OECD

GLOBAL

Headline inflation has moderated significantly since September/October 2022 but is well above central bank targets in developed countries. Also underlying inflation is proving sticky across the OECD, which remains a concern.

  • The developed world saw inflation moderate in May, including core, except the UK. When the OECD aggregate is released, it is likely that core will exceed headline for the first time since January 2021.
  • More moderate inflation in Asia has meant that most Asian central banks have been able to pause rate rises and the discussion has turned to when easing will begin.
  • To see more details on the global macro outlook see MNI Insight: Global Macro - Growth Outlook Improved, Numerous Uncertainties.
OECD vs non-Japan Asia CPI y/y%

Source: MNI - Market News/Refinitiv

OECD vs non-Japan Asia underlying CPI y/y%


Source: MNI - Market News/Refinitiv

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