Moody's: High inflation will be temporary, thanks to central bank targets

Moody’s senior vice-president Clara Lau said that although the Russia-Ukraine military conflict has limited impact on Asia-Pacific companies in the near-term, the threat of supply chain disruptions and continued inflation would exacerbate supply-side cost pressures.

KUALA LUMPUR: The current high inflation will cause significant but temporary credit effects in many countries, as the actions of central banks will help push inflation lower next year, and ease further in 2024 with economic growth recovering towards trend, Moody’s Investors Service said in a report.

Managing director credit strategy Colin Ellis said the high inflation rates were unusual.