Asian governments are largely adopting a targeted approach to curb inflation by imposing export bans to stringent price controls. For now, the strategies seem to be working than their Western counterparts in curbing global inflationary pressure.

While inflation remains a serious economic challenge in Asia, the measures have helped to shift some of the cost burdens away from consumers and small businesses largely to government balance sheets.

Indonesia, last week hiked energy subsidies by $24 billion to contain energy costs and an export ban on palm oil that was lifted last week. Coupled with some price hikes and strong household demand, inflation is within its central bank target band of 2-4%.

In South Korea, government caps on electricity bills helped provide a competitive edge for global manufacturers like Samsung Electronics and Hyundai Motor and cushion the hit to households' disposable incomes.

In Thailand, headline inflation has only just breached the central bank's target range of 1-3% and the bank's chief has pledged continued monetary support for the economic recovery.

India banned wheat exports as a scorching heat wave curtailed output and domestic prices hit record highs.

Malaysia said it would stop exports of 3.6 million chickens monthly from June until prices soothed out. Its mechanisms to subsidise fuel, cooking oil and transport have knocked about 1.5 percentage points off the country's inflation, bringing it to just 2.3% in April.

In contrast, Western governments have been reluctant to intervene in production lines to bring down prices of key items such as food and fuel. U.S. and UK inflation has now surged to decade-highs, crimping retailers' profit and shoppers' spending power according to a Reuters report.

The Western government have largely depended on monetary policy to contain prices, with the U.S., UK and Canadian central banks now engaged in aggressive interest rate hike cycles.

Asian governments intervention in domestic supply is not new, although economic reforms and a stronger focus on fiscal discipline over the past decade seem to have given greater room for market forces.
-Reuters