Asian countries have raised their interest rates as concerns over inflation and asset bubbles heighten.
Grice says India is unlikely to raise its interest rates soon, following a hike earlier this month, but it has struggled to combat stubbornly high inflation for some time.
According to Grice, inflation in Asia peaked two to three months ago but is rising again, mainly following a significant increase in food prices.
“Many countries have been expanding strongly and are hitting their capacity constraints,” he says.
“Together with rising food prices, this is causing inflation to rise.”
More quantitative easing by America may also contribute to raising inflation, although Grice says food prices are the main driver.
Elsewhere in the region, Australia and Vietnam, which has one of the highest interest rates worldwide, have also tightened their monetary policies to fight inflation and prevent asset bubbles.