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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
ASIA
Supply chain issues were one factor that drove Asian inflation higher over 2021-2022 but food prices also contributed (see MNI Inflation Should Keep Moderating As Supply Chain Tensions Resolve). The local peak in FAO global food price inflation was in March last year at +34% y/y (wheat and oils were heavily impacted by Russia’s invasion of Ukraine) but were down 20.9% y/y in June this year. Food price deflation has stabilised in recent months at a very low level signalling further downward pressure on Asian headline inflation is likely in the coming months.
- All components were down on a year ago in June but Russia’s refusal to sign an extension of the grain deal with Ukraine could put upward pressure on cereal prices again, which are currently down 23.9% y/y. Oils are -45.3% y/y, dairy -22.2% and meat -6.4%. Sugar is the only main component to be higher at +29.7% y/y.
Non-Japan Asian CPI y/y% vs FAO global food prices y/y%
Source: MNI - Market News/Refinitiv/IMF/FAO
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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