14 September 2011
Consumer prices continued sharply rising in Vietnam and India in August, with both countries therefore threatened to lose some price competitiveness on the global apparel market. Inflation will be stronger than expected this year in Asia, the Asian Development Bank (ADB) just reported.
Inflation rates began less sharply rising in July and August in most emerging countries, however remaining very strong.
In its today released economic update, the Asian Development Bank (ADB) warned against the high level of inflation rates this year.
Full year forecast for 2011 was raised for a large number of countries, including China (from 4.6% initial estimate to 5.3%), or India (from 7.8% to 8.5%).
Inflation in Pakistan would finally be 13.9% this year, from initial forecast at 16%, however remaining at a very high level.
While consumer prices are expected less sharply rising in the next year (see below table), this inflation rate should stay relatively unchanged in Pakistan, in addition.
The ADB also warned about the high level in inflation rates in India and Vietnam.
India today announced a rebound in inflation rates in August, after its wholesale prices rose 9.78%, compared with the same month in 2010, from 9.22% in July.
Food prices are again behind the higher inflation rate in India.
In Vietnam, consumer prices surged no less than 23% in August, from a year earlier, with no sign yet the country could tame its soaring inflation, whatever official predictions about a potential return to a single-digit rise in the coming period.
China is also still confronted with inflation rates above 6%, and consecutive employee demand for higher wages.
By contrast, a series of emerging countries were able to maintain inflation rates at more reasonable levels in the recent period, such as Indonesia, Mexico, or Turkey.
They could consecutively take advantage of better price competitiveness on the apparel market, where prices are mostly dependent on wage levels, and on consumer price indices, consecutively.
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