ADB: Inflation in the Asia and Pacific Region in 2024 Will Decrease to 3.2 Percent

REPUBLIKA.CO.ID, JAKARTA — The Asian Development Bank (ADB) projects inflation in the Asia and Pacific region to fall to 3.2 percent in 2024, in line with easing global price pressures.

“Inflation in the developing Asia and Pacific region is expected to fall to 3.2 percent this year and 3 percent next year,” said ADB Chief Economist Albert Park in Jakarta, Thursday (11/4/2024).

The decline in inflation is projected to occur in line with easing global price pressures and monetary policy which is still quite tight in many countries’ economies. However, outside China, inflation in the region is still higher than before the COVID-19 pandemic.

Albert said the price of rice also contributed to high food price inflation, especially for economies that depend on imports. Rice prices are likely to remain high this year, according to the April 2024 Asian Development Outlook (ADO) report.

Causes include crop failure due to bad weather and India’s restrictions on rice exports.

Rising global shipping costs due to attacks on ships in the Red Sea and drought in the Panama Canal may also increase inflation in Asia.

To address rising rice prices and protect food security, governments can provide targeted subsidies to vulnerable populations and increase transparency and market monitoring to prevent price manipulation and hoarding.

In the medium and long term, policies need to focus on creating strategic rice reserves to stabilize prices, promoting sustainable agriculture and crop diversification, and investing in agricultural technology and infrastructure to increase productivity.

Regional cooperation can also help in managing rice prices and their impacts, the report explains.

ADB is committed to achieving a prosperous, inclusive, resilient and sustainable Asia and the Pacific, and continues its efforts to eradicate extreme poverty.

Founded in 1966, ADB is owned by 68 members, of which 49 are in the Asia and Pacific region.

source: Antara