EM disinflation has further to run

Aggregate EM inflation is now at its lowest level in four years, with notable declines this year across Asia. We still think the outlook will be characterised by higher inflation in Latin America and Central Europe than in Asia, but we’ve become less concerned about the strength of price pressures in the former two regions. We think that EM monetary easing cycles still have further to run, and particularly so in Asia and Latin America.