Inflation dynamics in Asia and the Pacific

Joint conference of Bangko Sentral ng Pilipinas and the Bank for International Settlements on "Inflation dynamics in Asia and the Pacific", Manila, the Philippines, 19-20 August 2019.

In the past decade, not only have inflation rates fallen to low levels in many Asia-Pacific economies, they also appear to have been more correlated across countries, raising questions about their possible drivers. These changes have been accompanied by a declining sensitivity of inflation to shocks, very low policy rates, rapid increases in credit and asset prices, and increased financial system risks. Such developments prompted Asia-Pacific central banks to examine recent changes in inflation dynamics and explore implications for their monetary policy frameworks. Against this background, the BIS Representative Office for Asia and the Pacific (BIS Asian Office) and Bangko Sentral ng Pilipinas co-hosted a conference on inflation dynamics in Asia and the Pacific. It was the culmination of the two-year research programme organised by the BIS Asian Office on the theme in 2018-19. The papers presented at the conference covered the behaviour of inflation, robots and labour, pass-through from short-term to long-term inflation expectations, ageing workforce and inflation, strategic complementarity and price setting among firms, and relative price changes and aggregate inflation.

The proceedings of the conference were published in March 2020.