RBI Warns of Inflation Risks from Middle East Conflict Spillover

Regional and African outlets focus on how the Middle East conflict is starting to push up inflation in countries like the Philippines and South Africa. The BSP’s rate hike to 4.5% and South Africa’s uptick to 3.1% inflation are framed as early reactions to an expected oil price surge. Commentators in these regions warn that higher fuel and food costs will hit lower-income households hardest and could slow local recoveries.

• •The Bangko Sentral ng Pilipinas raises its policy rate to 4.5% because the Middle East crisis is worsening the Philippines’ inflation outlook.
• •South African inflation rising to 3.1% in March is seen as a starting point before oil-driven increases from April.
• •Regional economists warn that higher fuel prices will quickly pass through to transport and food costs.
• •Governments in emerging markets may have less room to shield consumers from higher energy prices.
• •Further rate hikes in these economies are considered likely if oil prices continue to climb.