Heat waves and heavy rain may have pushed up some agricultural prices, adding slight inflationary pressure, analysts said.
While demand-side pressures remain soft, new fiscal stimulus from President Lee Jae-myung’s administration–including cash handouts to boost consumption–could add short-term price pressures, said Chun Kyu-yeon, economist at Hana Securities.
The Bank of Korea in May projected 2025 inflation at 1.9%, just below its 2.0% target. The central bank is set to update its forecast in August.
Indonesia
Indonesia's statistics bureau will release second-quarter GDP data on Tuesday.
Growth likely eased to 4.80% from 4.87% in the prior quarter, reflecting weaker domestic and external demand, ANZ economists Vicky Xiao Zhou and Raymond Yeung said in a note.
High-frequency indicators point to softer consumer sentiment, subdued retail and car sales, and slower loan growth. While government spending began rising in June, its full impact will likely appear in the third quarter, they added.
Although the recent U.S. tariff cut to 19% is a positive step, it may only partially offset downside risks to growth, ANZ said.
Taiwan
Taiwan will release July inflation and trade data Wednesday and Friday.
Inflation likely remained subdued after hitting a more than four-year low in June, with forecasts ranging from 1.3% to 1.6%. ANZ economists expect firm food inflation but a sequential decline in clothing inflation, reflecting seasonal trends.
July exports likely stayed solid amid continued demand for tech products, though ING economists warned momentum could soften in coming months.
The U.S. unveiled a 20% tariff on Taiwanese goods ahead of the Aug. 1 deadline--down from the initial 32% but higher than the 15% rate for Japan and South Korea. Taiwan's cabinet said the tariff is temporary as trade talks have reached "a certain degree of consensus" on key issues.
The final tariff rate could be lowered once negotiations conclude. Details on sectoral tariffs, particularly for chips and electronics, will be key to Taiwan's trade and growth outlook for the rest of the year, economists said.
Philippines
The Philippines is scheduled to release its July inflation data on Tuesday. The data will be watched to see if price growth falls within policymakers' target range. Bangko Sentral ng Pilipinas expects July's inflation to range between 0.5% and 1.3%, which could open the door for further rate cuts, said MUFG Bank's Lloyd Chan in a research report.
The Southeast Asian country's second-quarter gross domestic product figures are also due on Thursday. The Philippines' economy likely slowed as election-related restrictions on government spending were in place, Barclays economists and analysts said in a note.
Thailand
Thailand will report July inflation this week, which will indicate whether consumer prices remain in deflation.
Prices likely continued to decline, reflecting lower raw food and energy costs and base effects, ANZ Research said.
Any references to days are in local times.
Write to Jessica Fleetham at jessica.fleetham@wsj.com and Jihye Lee at jihye.lee@wsj.com
(END) Dow Jones Newswires
August 03, 2025 17:14 ET (21:14 GMT)
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