I extracted 2 key points being addressed
- Developing Asia in fact faces greater risks in inflation than the US or Europe. Asian countries have been harder hit by the rise in prices of food, which takes up a much larger share of household expenditures (30% or more, which is roughly double what it is in the US and Europe), as well as the oil price increase. CPI inflation in developing Asia is now running at around 8% on average, although the figures probably understate inflationary pressures in economies with price controls on various commodities. Some Asian economies are seeing much higher inflation rates.
- Singapore’s challenges mirror those faced elsewhere in Asia, but are in some ways more pronounced. We are a price taker in the textbook sense, given our small size and the openness of our economy and financial markets. We cannot insulate ourselves from global prices of food or fuel, or anything else.