Oil price and exchange rate changes impact inflation rates in Asia
The impact of oil prices and exchange rates on inflation varies in Indonesia, Malaysia, and Thailand. When oil prices go up, producer prices rise more than consumer prices. But when oil prices drop, only Thailand sees lower prices. A weaker currency raises both consumer and producer prices in all three countries. However, a stronger currency doesn't lower prices. To keep prices stable, policymakers should improve how energy incentives are distributed.