'Easing global oil prices to pull down inflation'

Easing global oil prices are expected to pave the way for lower inflation and improved external position across Asian economies, with the Philippines and Thailand projected to experience the largest impact on inflation, according to ANZ Research.

- BRIX LELIS

In its Asia Macro Weekly report, ANZ Research said average global oil prices in September have softened so far and the transmission to pump prices in economies in the region is underway.

"If the weakness in global oil prices persists, disinflation will gather pace, and most of the region's external positions will improve," it said. "Thailand and the Philippines will see the biggest drag to inflation." According to ANZ, global oil prices have eased this month with average Brent crude oil prices down by seven percent from August.

It also noted that at one point, prices fell below the $70-per-barrel mark for the first time since December 2021.