Asia - Far East inflation shows signs of easing

There are signs that inflation in the Far East may ease, impacted by currency movements and developments in agricultural commodity markets, according to Mondrian Investment Partners, advisers on the Lincoln Far East trust. The consensus among financial commentators is that China and India are currently seeing a challenging investment environment because of their link to the US dollar. Where these markets are linked to US monetary policy, their interest rates are artificially low. This loose monetary policy promotes money supply growth, which fuels excess demand and has thus boosted infl...