Why is inflation different in Asia?

Inflation hasn’t emerged as a concern across Emerging Asia in the same way it has in the rest of the emerging world, in part because food price inflation in Asia is much lower, but also because the region has experienced much less disruption from the pandemic than other EMs. Whereas central banks in Latin America and Emerging Europe will tighten monetary policy further over the coming months, interest rates in most of Asia will remain on hold.