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Inflation can be concerning for countries around the globe. In that vein, it recently came to this blogger’s attention that officials in China have apparently decided to raise an important interest rate. For further insight it is necessary to quote directly from the official website of USA Today, USAToday.com:

BEIJING — China raised a key interest rate Wednesday for a third time this year as it tries to cool surging inflation. The benchmark rate for one-year loans will be raised 0.25 percentage points to 6.56%, effective Thursday, the central bank announced. The rate paid on deposits will rise a similar margin to 3.5%. Inflation hit a 34-month high of 5.5% in May and is believed to have risen in June even as an overheated economy cools gradually under the pressure of investment curbs and other controls…

The administration of this blog asks readers to click upon the appropriate hyperlink noted above in order to read this insightful article in full.

In recent months it would seem as though China has had some difficulty controlling inflation. It would appear that the decision noted above has been made in an attempt to reign in rising inflation. In a previous posting on this blog it was noted that economic officials in the Southeast Asian nations of Laos and Cambodia have commented upon the likelihood that inflation would increase in those countries moving forward. Clearly, there exists an overall trend of inflation around the globe, but it remains to be seen whether governmental efforts will be successful in mitigating the ramifications of this economic force.

In related economic news, it appears that officials of the Association of Southeast Asian Nations (ASEAN) are poised to meet with business leaders from the nation of Japan. To shed light upon these unfolding events it may be prudent to quote directly from Yahoo News Singapore at Yahoo.com:

KUALA LUMPUR, July 5 (Bernama) — The Federation of Japanese Chambers of Commerce and Industry in ASEAN (FJCCIA) will hold its fourth annual dialogue with the Secretary-General of ASEAN Secretariat, Dr Surin Pitsuwan, here on Friday. During the dialogue, they will exchange views on tackling business issues associated with Asean”s on-going economic integration, said Takehide Teranishi…

This blogger encourages readers to click upon the relevant hyperlinks noted above to read about this situation in detail.

In a previous posting on this blog it was noted that the ASEAN community had sent a goodwill mission to Japan in response to events which transpired as a result of the tragic Earthquake in March of this year. As Japan remains a substantial economic force in both an Asian and global context it remains an important trading center. Therefore, other countries such as the United States, those within the ASEAN region (Brunei Darussalam, Cambodia, Indonesia, Laos, Myanmar, Philippines, Singapore, Thailand, Malaysia, and Vietnam), and even the so-called BRICS countries (Brazil, Russia, India, China, and South Africa) seek to maintain strong trade relations with Japan. Hopefully economic benefits derived from the discussions noted above will accrue to the economies of all concerned.

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Tags: ASEAN, ASEAN Business News, Asian Business News, Asian Economic News, ASsociation of Southeast ASian Nations, Brazil, BRICS, Brunei Darussalam, Cambodia, China, Dr Surin Pitsuwan, Economic News, Federation of Japanese Chambers of Commerce and Industry in ASEAN, India, Indonesia, inflation, key interest rate, Laos, Malaysia, Myanmar, Philippines, Russia, Secretary-General of ASEAN Secretariat, Singapore, South Africa, Takehide Teranishi, Thailand, Vietnam
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It recently came to this blogger’s attention that the issue of inflation has been on the minds of policymakers in some of the member countries of the Association of Southeast Asian Nations (ASEAN). Officials is Laos and Cambodia were recently noted by media outlets in those jurisdictions to have commented upon this issue. To quote directly from the official website of the Vientiane Times, VientianeTimes.org.la:

The government is concerned about rising inflation in Laos, triggered by the high price of oil and food, which is expected to impact on the economy and poverty reduction efforts. Deputy Minister of Planning and Investment Dr Bounthavy Sisouphanthong said on Thursday the government is studying measures it can take to minimise the impacts on the economy and livelihoods of local people… Dr Liber warned that the government needs to respond to the situation quickly, as rising inflation will cause more serious impacts on the economy and efforts to reduce poverty levels. The government cabinet’s monthly meeting was held in Vientiane on April 25-26 and assigned the relevant sectors to study measures to minimise the impacts of rising fuel prices on the economy.

The administration of this web log asks readers to click upon the hyperlinks noted above to read further from this interesting article. Clearly, Lao officials are aware that inflation may become an acutely pressing issue at some point, but it would seem, at least for now, that measures are being considered to respond to issues pertaining to inflation in Laos.

Meanwhile, Laos is not the only ASEAN member nation whose officials are analyzing the issue of inflation. It would seem as though authorities in the Kingdom of Cambodia are also concerned about the possibility of inflation. To quote directly from the official website of the Phnom Penh Post, PhnomPenhPost.com:

Cambodia should expect price inflation of 6 percent this year, according to a United Nations report released yesterday, which government officials said was a tolerable level…Minister of Economy and Finance Deputy Secretary General Ros Seilava said at the report’s release in Phnom Penh that 6 percent inflation for 2011 was a manageable level. “A six to seven percent increase in inflation is expected this year, however to a certain level, this could be tolerated,” he said.

Again, the administration encourages readers to click upon the hyperlinks noted above to gain further perspective and insight into this issue in a Cambodian context from a well written and informative posting.

It would seem apparent that issues associated with inflation are likely to be of possible concern for those conducting business in Cambodia or business in Laos going forward. The same may also be true for those conducting business in the neighboring Kingdom of Thailand. In any case, inflation is an important economic issue that must be discussed. It is certainly a positive sign that officials in Laos and Cambodia are aware of these issues, but the ramifications of possible future inflation have yet to be fully realized. Issues associated with inflation are a cause for concern in countries such as the United States, but in the context of so-called “developing nations” this issue can be extremely important. Therefore, those interested in the issue of inflation in a Southeast Asian context may be prudent to continue following this developing story.

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Tags: ASEAN news, ASsociation of Southeast ASian Nations, Business in ASEAN, Business in Cambodia, Business in Laos, Cambodia news, Deputy Minister of Planning and Investment Dr Bounthavy Sisouphanthong, inflation, inflation in Southeast Asia, inflation news, Laos news, Minister of Economy and Finance Deputy Secretary General Ros Seilava, Phnom Penh, United Nations, Vientiane
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