Widening ripples: The war in Ukraine and inflation in Asean+3

 Catharine Kho

AS THE war in Ukraine enters its fourth month, its impact continues to reverberate across the Asean+3 region (comprising the 10 members of the Association of South-east Asian Nations and China, Japan and Korea). Since the war began, the price of petrol in the region has increased by more than 25 per cent—and with it, the price of transportation, food and other consumer products. Inflation across all Asean+3 economies were 1.2–2.7 times higher in March and April compared to the first two months of the year.

Russia and Ukraine are major global producers of key commodities. In 2021, Russia was the largest producer of natural gas, the second largest exporter of crude oil and condensates, and the third largest exporter of coal in the world. Ukraine and Russia are also among the world’s largest exporters of sunflower oil and wheat.