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Inflation risk has peaked in Asia; rate hikes may moderate: Morgan Stanley

Inflation as measured by the CPI index stood at 7.04 in May 2022, higher than the Reserve Bank of India's (RBI's) comfort zone of 2 - 6 per cent

Chetan Ahya, Morgan Stanley
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Chetan Ahya, Morgan Stanley

Puneet Wadhwa New Delhi
Inflation risk in Asian economies, including India, have peaked and in the next few months, it could, in fact, surprise on the downside, said analysts at Morgan Stanley. The markets, they said, are pricing in more hawkish Asian central bank moves than warranted.

ALSO READ: MPC minutes flag inflation worry; aim to bring CPI within target band by Q4

"Deflating goods demand, easing supply-chain disruptions and falling commodity prices means that goods inflation has decisively peaked. Global food prices, which was earlier a cause of concern for Asia given food’s large weightage in CPI, have rolled over meaningfully, alleviating

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First Published: Jul 07 2022 | 12:33 PM IST

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