Asia’s red-hot food prices will likely heat up further in the coming months, with Singapore, South Korea and the Philippines set to see the sharpest price increases, according to Nomura Holdings Inc.
Food prices in Asia ex-Japan rose 5.9% annually in May, from 2.7% in December, Nomura said in a report Monday. That rate should accelerate in the second half of the year given the roughly six-month lag between the movement of global food costs and their impacts in Asia. Issues like China’s pandemic lockdowns, Thailand’s swine fever outbreak and India’s heat wave add to woes.
“Consumers’ perception of inflation is strongly influenced by the prices of frequently purchased necessities, such as food, and can lead to higher inflation expectations,” it said, adding that Jakarta and Manila have already had to raise minimum wage levels to account for the higher cost of living.