Inflation Is Here to Stay Despite Rising Interest Rates, Asian Business Leaders Warn

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A number of structural changes in the global economy could keep driving up costs, such as deglobalization, decarbonization and U.S.-China tensions.

This collapses globalization and increases prices as manufacturing will no longer be based on numbers and cost considerations, Shankar added.

"If you look at the fossil fuel industry, they are investing at a pace as if we are transitioning to a net-zero economy by 2035 whereas the renewable industry is investing at a pace of roughly a third of what is required for net-zero by 2050," he said. "I think a real abnormal situation was the period we went through where central banks and others perhaps now, in retrospect, reacted too strongly and we had too long a period of zero or even negative interest rates," Ho said.

Even China itself is preparing to be self-sufficient in key areas such as securing enough energy, food and critical goods supplies, Ho adds. The world's business leaders may have to abandon"the luxury of thinking" that the U.S. and China will get back together, Ho said.

 

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