HSBC's Fred Neumann: Asian Inflation Is Mostly Transitory

The video discusses inflation dynamics in Asia, highlighting the lack of significant CPI pressures compared to the US. It explores the relationship between PPI and CPI, noting that consumer demand in Asia is not strong enough to pass on input price pressures. The discussion includes China's PPI trends and expectations for a decrease due to cooling construction and weaker credit impulse. Central bank responses are analyzed, with some Asian banks potentially moving ahead of the Fed due to asset price concerns. The risks of currency strength and asset price inflation are also considered.

In what ways have corporations in China managed to protect their profit margins despite rising input costs?

What potential risks do central banks face if they move ahead of the Fed in terms of monetary policy?