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ADB's 2026 Inflation Projection for Southeast Asian Countries

Akbar Ridwan 17/04/2026 14:04 WIB

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According to the ADB report, the US-Israeli war against Iran that broke out since the end of February 2026 has the potential to increase inflation in the Asia-Pacific region, including Southeast Asia.

2026 Inflation Projections in Southeast Asian Countries, Asian Development Bank Version (April 2026)*

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2026 Inflation Projections in Southeast Asian Countries, Asian Development Bank Version (April 2026)*

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According to a report by the Asian Development Bank (ADB), the U.S.-Israel war against Iran that broke out since the end of February 2026 has the potential to increase inflation in the Asia-Pacific region.

In a scenario of early stabilization—if the conflict lasts for about one month and the disruption gradually subsides afterward—inflation in the Asia-Pacific region is projected to be 3.6% in 2026.

However, if the Middle East conflict continues until the third quarter, inflation in the Asia-Pacific region in 2026 is projected to rise to 5.6%.

"Stronger domestic demand in developing countries of Southeast Asia and rising energy prices in the Pacific are expected to drive up inflation rates in that subregion," said the ADB in its April 2026 edition of the Asian Development Outlook.

With an early stabilization scenario, the ADB projects inflation in developing countries of Southeast Asia-excluding Singapore-to rise from 2.3% in 2025 to 3.2% in 2026.

According to the ADB, consumer prices are expected to rise slightly in most countries, with further upward pressure due to rising energy and food production costs, if the conflict in the Middle East persists.

"In Indonesia, increasing domestic demand will also drive up inflation," said the ADB, which projects Indonesia's inflation to be 2.5% this year.

Overall, Myanmar is projected to have the highest inflation in Southeast Asia in 2026, reaching 24%.

Here are the inflation projections for 2026 for Southeast Asian countries, according to the ADB's April 2026 report:

Myanmar: 24%
Laos: 9.8%
Vietnam: 4%
Philippines: 4%
Cambodia: 2.8%
Indonesia: 2.5%
Malaysia: 1.8%
Timor-Leste: 1.7%
Singapore: 1.6%
Thailand: 1.3%
Brunei Darussalam: 0.9%

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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ADB's 2026 Inflation Projection for Southeast Asian Countries

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