Asia Inflation May Rise With Thai Rice Price

Yingluck Shinawatra became Thailand's first female prime minister by pledging to lift rural incomes through higher rice prices. The rest of Asia may now have to pay for her campaign promise. ... "High rice prices will translate into higher inflation pressures in Asia, at a time when most inflation readings are flirting near the higher end of central-bank target or forecast ranges," said Chua Hak Bin, a Singapore-based economist at Bank of America Merrill Lynch. "Once the global backdrop stabilizes, inflation could come back strongly." ... Food makes up more than 30 percent of inflation indexes on average in Asia. – Bloomberg