0129 GMT - Sluggish economic activity rather than the disinflationary influence of China's cheaper imports will keep inflation soft in Asia next year, says Marcel Thieliant, Capital Economics' head of Asia-Pacific, in a note. The disinflationary contribution from China may have contributed to the drop in core inflation across the region from its peak of 4.0% in late 2022 to around 1.5% now, but the main drivers have been the easing of pandemic-related supply shortages as well as falling food and energy prices, he says. GDP growth will slow a bit further across the region over the next couple of years, which will keep domestic price pressures subdued, he says. By contrast, the disinflationary impact of cheaper imports from China will probably remain small, he adds. (amanda.lee@wsj.com)

(END) Dow Jones Newswires

November 11, 2025 20:29 ET (01:29 GMT)

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