From bottlenecks to inflation: Impact of global supply-chain disruptions on inflation in select Asian economies

Reizle Jade C. Platitas and Jan Christopher Ocampo

Latin American Journal of Central Banking (previously Monetaria), 2025, vol. 6, issue 1

Abstract: Supply-chain bottlenecks emerged alongside unprecedented inflationary surges amid the resulting mismatches in supply and demand for goods and services throughout the COVID-19 pandemic. This study employs a local projection approach to investigate the inflationary impact of global supply-chain pressures in the Philippines and select East Asian neighbors. We find that supply-chain disruptions are followed by sizable and statistically significant increases in headline inflation in the Philippines, Rep. of Korea, Thailand, and Singapore. Supply-chain shocks also have a considerable impact on the tradable segment of core inflation. Meanwhile, non-tradable inflation has a generally smaller, short-lived, and insignificant response to global supply-chain pressures reflecting the limited presence of second-round, indirect effects.

Keywords: Inflation; Global supply chains; Monetary policy (search for similar items in EconPapers)
JEL-codes: C1 E31 E52 F10 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:lajcba:v:6:y:2025:i:1:s2666143824000231

DOI: 10.1016/j.latcb.2024.100141

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