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Asia heat waves spell double trouble for economies hit by oil

The Japan Times·Claire Jiao·25 days ago
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Asia is grappling with a new threat to inflation on top of an oil shock as a looming El Nino brings soaring temperatures and dry weather to countries from India to New Zealand, driving up food costs. Inflation accelerated to multiyear highs across much of Asia, latest figures showed, led by higher transport, logistics and utility costs. The biggest spikes were in the Philippines and Pakistan, where inflation soared above 7% and to 11%, respectively. Those pressures could intensify further as El Nino is forecast to bring drier conditions and hotter weather later this year. Food makes up about 40% to 50% of consumer price baskets in emerging markets in Asia, making them vulnerable to price shocks and an erosion of real incomes. "Food inflation in Asia is set to rise in 2026,” said Adam Ahmad Samdin at Oxford Economics.…

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