Asia heat waves and El Nino could spark another inflation surge for oil hit economies

Dry weather meets oil shock, raising food inflation risk

Asia is bracing for a fresh inflation wave as heat and dry weather intensify food price pressures under El Nino. The threat lands on top of existing oil price shocks, squeezing already-stressed economies. Countries including the Philippines and Pakistan are seeing high inflation now, and further price hikes are expected in the coming quarters as El Nino strengthens later this year.