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

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  • Platitas, Reizle Jade C.
  • Ocampo, Jan Christopher G.

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.

Suggested Citation

  • Platitas, Reizle Jade C. & Ocampo, Jan Christopher G., 2025. "From bottlenecks to inflation: Impact of global supply-chain disruptions on inflation in select Asian economies," Latin American Journal of Central Banking (previously Monetaria), Elsevier, vol. 6(1).
    • Handle: RePEc:eee:lajcba:v:6:y:2025:i:1:s2666143824000231
    DOI: 10.1016/j.latcb.2024.100141
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    Keywords

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    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • F10 - International Economics - - Trade - - - General
    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General

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