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Asian Inflation Sends Mixed Signals as Headline Rates Ease but Core Pressures Stay High

Volatile global oil and commodity costs plus sharp food price jumps mean recent headline dips may not signal durable disinflation.

Overview

  • Pakistan’s consumer inflation eased to 9.2% year‑on‑year in July, but prices rose 1.2% from June showing the monthly trend remains strong.
  • July food shocks in Pakistan included huge year‑on‑year jumps in tomatoes, wheat and onions that pushed essential food inflation well above general rates.
  • The State Bank of Pakistan held its policy rate at 11.5% and said it expects inflation to move toward the bank’s 5–7% target band by year‑end while warning risks persist.
  • India’s wholesale price index climbed to 9.87% in June with the government saying global commodity and energy costs drove the rise and pointing to buffer stocks, grain sales and trade measures to protect consumers.
  • South Korea’s CPI cooled to 2.8% in July as oil prices stabilised but core inflation stayed elevated and officials said they will monitor conditions closely for possible further monetary tightening.