Posted by John Malloy on 06/10/2008

• Share
• Tweet
• Email

• Share
• Tweet
• Email

Bangkok, Thailand – Across Asia, the bugbear of inflation is back, and it’s not just policy wonks who are feeling the strain. Faced with rippling social unrest over soaring prices for fuel and food, governments are struggling to cushion the blow, while keeping economic growth on track.

With inflation rates at multiple-year highs in Thailand, Vietnam, South Korea, and Indonesia, policymakers are reluctantly raising interest rates in a bid to keep a lid on rising prices. At the same time, Asian governments are having to slash fuel subsidies to stop their own budget blowouts, all the while keeping a wary eye on the political backlash.

Last week, Malaysia raised pump prices by 41 percent for gasoline and 67 percent for diesel, to the dismay of consumers accustomed to cheap fuel, and to the delight of an emboldened opposition that has begun planning nationwide anti-inflation rallies. Reaction was swifter in India, where protests broke out in West Bengal after double-digit fuel price rises that, analysts say, could dent the popularity of the ruling Congress Party… www.csmonitor.com

Posted by John Malloy on 06/10/2008. Filed under International. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry