Energy-Price Inflation Likely to Remain High in Some Asian Economies — Market Talk

Fuel subsidies and price controls have prevented high oil prices from feeding into inflation across Asia's largest economies, but this hasn't eliminated inflation concerns altogether, says Gareth Leather at Capital Economics. Higher energy costs have been passed through directly to consumers in economies with limited price controls or subsidies, notably the Philippines, Thailand, Pakistan, Singapore and Sri Lanka. Inflation in these countries has risen more sharply since the start of the Iran conflict than elsewhere in the region, he says. Oil prices will remain elevated, ending the year at $100 a barrel before falling back next year, he adds.(jiahui.huang@wsj.com; @ivy_jiahuihuang)