Asia’s inflation scare easing despite hotter prints
Morgan Stanley economist Derrick Kam said Asia’s inflation scare may be overstated even after Australia and Singapore posted hotter-than-expected inflation and the Philippines and South Korea raised rates.
Source: The Business Times Singapore · August 28, 2026 at 10:01 AM · AI-assisted report
Single-sourceSINGAPORE, 28 AUGUST 2026 —
Morgan Stanley economist Derrick Kam said Asia’s inflation scare may be overstated even after Australia and Singapore posted hotter-than-expected inflation and the Philippines and South Korea raised rates.
Market Impact
Kam told Market Focus Weekly, a podcast by The Business Times, the data looks concerning at first glance but the full picture tells a different story. He said Asia’s investment boom could help drive stronger growth and ease inflation pressures.
Kam’s comments follow US Federal Reserve Chair Kevin Warsh’s remarks at Jackson Hole, which added to worries over stubborn US inflation and elevated bond yields. The episode comes after recent inflation prints led some to conclude Asia is bracing for a genuine inflation shock.
He said the region’s capex surge could help drive a more positive outlook for growth and inflation dynamics. Kam did not provide specific figures or forecasts in the interview.
Related: Morgan Stanley · Derrick Kam