Headline inflationary pressures hit key emerging markets early last year, generating hawkish monetary policy responses well ahead of developed markets. To the extent that inflationary dynamics are proving more global than anticipated, and with most key developed market central banks following emerging markets’ monetary tightening cycles with around a one-year lag, it’s possible that the evolving emerging markets inflation and rate cycles could offer valued guidance of what developed markets may experience in the coming months.
Ehsan Khoman, Head of Emerging Markets Research (EMEA), offers insights into the lessons learnt from the inflation experience in emerging markets and what this could entail for developed markets as the prospects of peak inflation moves into sight.
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