World prices of food, along with energy, surged to record highs in 2022, as supply disruptions caused by the Russia-Ukraine crisis added to the supply chain bottlenecks induced by the pandemic. Extreme weather and livestock diseases also pushed up global food prices. Consequently, food has been a prominent driver of inflation in the ASEAN+3 region and could weigh on growth. The question is when and whether any relief in prices will happen. This note analyzes the transmission of global food prices to inflation across the ASEAN+3 region and explore the risks to the food price outlook. It concludes with a discussion on possible policies to strengthen the region’s defences against elevated global food commodity prices.
Analytical Notes