通胀困扰印度和印尼

Inflation in India has been a major headache for policy makers in the country in recent years. But, new central bank chief Raghuram Rajan could be the country's long awaited inflation tamer. Here's what we can expect from Mr. Rajan and what else we should be on the look out for in South East Asia.

The country has been grappling with runaway prices for years, but may have finally found its inflation slayer - central bank chief Raghuram Rajan.

The Reserve Bank of India plans to overhaul its policy by shifting focus to managing the consumer price index -- or CPI -- from the wholesale price index, which has a bias towards businesses.

On Wednesday, CPI data will be released followed by WPI data later in the week.

And Indonesia's central bank is set to hold its first policy meeting of 2014 on Thursday.

Southeast Asia's largest economy has been in the spotlight mainly for the wrong reasons -- a battered rupiah currency, high inflation and a steep current account deficit, which has prompted the central bank to raise rates aggressively.

With recent data more positive, it's expected to stand pat this time. But investors will be watching closely, especially given Indonesia's status as one of the so-called "fragile five" emerging markets.