Explore the latest Global macroeconomic trends and forecasts to inform business strategy and pinpoint opportunities and risks

Consumer Price Inflation in the APAC Region in 2022

  • The average consumer price inflation in the Asia-Pacific region was 3.6% in 2022
  • The forecast for the global consumer price inflation rate is 7.9% for 2022 and 5% for 2023, and the inflation rise is accelerating due to rising energy, food, and commodity prices
  • The consumer price inflation in the APAC region was lowest in Japan at 1.6% in 2022

Global Consumer Price Inflation

The Consumer Price Inflation is a macroeconomic inflation indicator that the government and central bank use to target inflation. Additionally, it is employed in the national accounts as a deflator and to check the stability of prices.

Global inflationary pressures have increased since Russia invaded Ukraine in Q2 2022. Supply chain and transportation problems, elevated volatility, and rising energy, food, and commodity costs are all contributing to the acceleration of the global price rise. Although the war will also dampen some inflationary pressures due to lower private sector confidence and spending, overall global inflation is forecast to accelerate in 2022-2023.

Consumer Price Inflation in the APAC in 2022

India, New Zealand, Australia, Singapore, Thailand, Philippines, South Korea, Indonesia, Malaysia, Hong Kong, China, and Japan are the major economies in the Asia-Pacific region. With a consumer price inflation of 6%, India had the highest inflation rate in the APAC region. The average consumer price inflation for the selected countries was at 3.6% in 2022.

A rising pandemic, the conflict in Ukraine, and tightening global financial conditions are all expected to hurt Asia-Pacific's economic development in 2022, which is estimated to slow down more than previously forecasted. According to the IMF's most recent forecasts, the regional gross domestic product would grow by 4.9%, 0.5% points less than the forecast in January and slower than the previous year's 6.5% growth rate. They also estimate that inflation will rise significantly in many countries, although starting at relatively low levels.

The challenging policy trade-off between supporting recovery and controlling inflation and debt will be made even more difficult by slower growth and higher prices, coupled with the difficulties of war, infection, and tightening financial conditions. According to IMF recent forecasts, the invasion of Ukraine by Russia will be the biggest threat to economic growth, with advanced economies in the region being the most negatively impacted by a decline in demand from Europe and emerging markets suffering from increased global commodity prices.

Explore the latest Global macroeconomic trends and forecasts to inform business strategy and pinpoint opportunities and risks Explore the latest Global macroeconomic trends and forecasts to inform business strategy and pinpoint opportunities and risks Visit Report Store
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