El Nino Brings Food Price Fears to Asean
Asean countries are bracing for rising food prices due to El Nino, according to OCBC Group Research. The region is expected to see price hikes in rice, wheat, corn, and vegetable oil.
Lavanya Venkateswaran, a senior economist at OCBC Group Research, noted that the Philippines, Indonesia, and Thailand are among the most vulnerable countries to El Nino's effects. She also stated that Malaysia and Vietnam face significant but more concentrated risks.
The economist warned that rising food prices can add to regional inflationary pressures and increase imported inflation risks due to the region's reliance on imports for grains. The majority of economies in the region, including the ASEAN-6, are large net importers of grains and are highly vulnerable to inflationary pressures originating abroad.