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Is Inflation Peaking?

MACRO ANALYSIS
  • This table shows the annual inflation for 70 DM and EM countries and looks at the 3- and 6-month change to see if the inflation rate has been accelerating or decelerating in every country.
  • It is interesting to see that inflation has started to decelerate in many countries in July, especially in Asia and South East Asia (i.e. Malaysia, Philippines, Thailand and Vietnam).
  • The significant deceleration in inflation could explain why Asian and SE Asian currencies have remained strong against the USD in August despite most central banks keeping their policy rate on hold due to the rising uncertainty over the Delta variant.
  • A blue cell indicates that the 3M change in inflation is falling, while downward arrows indicate that the 6M change in inflation is falling.

Source: Bloomberg/MNI

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