The Asian Development Bank (ADB) has stated that the threat of high inflation could undo the progress of the past 20 years, and remains a major worry for the Asian market.
Rajat M Nag, managing director of the ADB said that inflation would exceed the 5.1% that was predicted in April. Rising food and fuel prices are the main dangers that are affecting the Asian inflation rates.
Rising inflation could damage investment and corporate earnings, which in turn could destabilise governments in the region.