Asian Development Bank: economies in the Asia-Pacific region face increasing risks of inflation in their development.

The Asian Development Bank stated that, with the early stabilization of the Middle East conflict and driven mainly by the increase in energy prices, the inflation rate of developing economies in the Asia-Pacific region is expected to rise from 3.0% in 2025 to 3.6% in 2026. The bank forecasts that as commodity prices normalize, inflation will fall to 3.4% next year. However, the Asian Development Bank believes that, given the current situation of potential disruptions lasting longer than expected, the upward risks to inflation will significantly increase. Prolonged disruptions in the energy and commodity markets will have more severe consequences, including rising fertilizer prices, thereby increasing agricultural production costs and leading to higher food prices. The analysis of the Asian Development Bank indicates that if the tense situation continues into the third quarter, the inflation rate in 2026 will reach 5.6%, and then slow down to 2.8% in 2027.