Sydney | Wednesday, April 27, 2011 1: 40 am EDT
Sydney (Reuters)--Australia's largest jump in inflation in quarter nearly five years, where is the feeling of rising food prices in rich and poor alike, adding to upward pressure on interest rates and currencies across Asia.
High abnormal surprisingly follow disturbing capture signals in consumer inflation expectations in South Korea, the Asian Development Bank warned policymakers that food prices must be received or that may face social unrest.
And respond to tightening policy and allow their currencies to rise, albeit often shift going snails pace many Asian States. And policy is set in the largest economy in the world to keep Super booster when "Federal Reserve" a two-day meeting Wednesday afternoon.
"The echo in the world, driven by monetary policy aultralosi settings in most developed countries in the world, reflected in the historically high commodity prices," Roland major strategic Randall at TD Securities in Singapore.
Bad weather also played a key part in global food prices rise, Australia also found to their cost last quarter. Floods and massive hurricane damage fruit and vegetable prices sent 15 percent in the quarter, with double banana prices alone.
This is the main driver of increased 1.6 percent in consumer prices for the three months to March, the biggest increase since 2006. The annual inflation rate picked up to 3.3 per cent, the fastest rate in more than two years.
As demonstrated by the steady increase of oil increased 9 per cent in petrol for three months, while the prices of electricity and water to double-digit gains for the year as a whole.
"We expect to see Jack in inflation pressure that comes through at a certain point. Said Michael on, Chief Economist at Commonwealth Bank in Sydney now we finally appeared to hit this point ".
"It looks like the story of inflation and changes in Australia. Next rate movement still looks to be up. "
Should be a concern for policymakers elsewhere as the Reserve Bank of Australia (RBA) far more aggressive tightening of many Asian counterparts, lifting prices seven times between 2009 in October and November.
Edit currency
It also allowed the Regional Office for Africa in currency to rise freely to curb inflation. The Australian dollar touched peak 29 years to its u.s. counterpart Wednesday that 18 percent this time last year.
Other central banks in the region were slower to stiffen and is only now showing willingness to let their currencies rise, fearing a withdrawal on exports.
As a result, some analysts fear behind the curve on inflation late and risking a vicious circle had higher expectations of wage claims and fodder prices even more price increases.
Data out Thursday showed South Koreans expect inflation to remain at the top end of the Central Bank's target range, indicating that they did not quell fears about rising prices even when BT Group began to take action to curb height.
The Bank of Korea (Bok) leave rates unchanged at its meeting in April despite clear signs of unease among its members at the mounting inflation raced to rise 29 months from 4.7 per cent in March.
Analysts from Barclays said in a note, "we believe we can and will rise every two of the more hawkish rhetoric, officials said.
"We also expect increasing intolerance with a stronger won to reduce mounting pressure on prices of imported".
China more forward in raising interest rates and Bank reserve requirements seem to be warming to the idea of allowing the Yuan stronger.
Beijing installed its currency set a new record of 6.5096 $ 1 on Wednesday, and was under repair dealers 6.5000 level would be an important signal of psycho.
The Asian Development Bank, the inexorable rise in the cost of eating also social risk.
The World Bank said Thursday that "efforts to stabilize food prices must lead". Otherwise, "had spread unrest occurring in the Middle East and North Africa to other parts of the world".
Include foods account for higher spending in Asia, the ADB said 40 per cent or more in consumer price indices from Bangladesh, Cambodia, India, Pakistan, Philippines, Sri Lanka _ and 3.3 billion people, two thirds of the world's poor consumer continent.
However expected the ADB global food prices remain at high levels in the second half of the year, disappointing those who believes that prices will drop supplies increased.
(Additional reporting John Mayer, chonsik u; editing by ranganatan Vidya)
No comments:
Post a Comment