According to the article, Soaring energy and food prices will help push the Asia Pacific inflation rate to a forecast 3.6 per cent this year from 2.7 per cent last year. At the same time, growth is tipped to slow to 3.7 per cent from 4.9 per cent in 2007, the Pacific Economic Cooperation Council (PECC) said. It said inflation is the biggest worry for the region at a time of slowing growth in the United States, the world's largest economy and a major market for the region's export-reliant economies. "Combined together, there is very little room for monetary stimuli," it said in the forecast for 16 Asia Pacific economies including the United States, Japan and China. Consumers are paying more for food and petrol throughout the region. The pain is particularly acute in Indonesia and China, the report said. Inflation in Indonesia is projected at 11.7 per cent this year, nearly twice that of 6.6 per cent in 2007 while in China, it is seen at 6.0 per cent compared with 4.8 per cent last year, it said. For Southeast Asia as a whole, overall inflation in 2008 is projected at 6.2 per cent, up from 3.2 per cent last year, said PECC. The slowing US economy, which some economists say is already in a recession, is the key reason behind the downward growth revisions for the Asia Pacific region, said PECC. Most of Asia is expected to feel the impact of the US slowdown with China's economic growth seen weakening to 9.6 per cent this year from 11.4 per cent last year. In Japan, 2008 growth is projected at 1.6 per cent from 2.1 per cent in 2007, said PECC.


For Detailed Report: http://economictimes.indiatimes.com/Economy/Inflation_Asias_biggest_concern/articleshow/3084769.cms

Source: Economic Times