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My Take | Asia can climate-proof its economic destiny by weathering the storm together
- Regional collaboration and self-help are important in preparing for potential weather disasters and addressing the challenges amid cooling inflation
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From the most remote corners of India to the UK and France, a common theme has emerged for voter dissatisfaction halfway through the year of elections – high inflation.
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Prices of essential goods increased over several months due to supply disruptions caused by the conflicts in Ukraine and Gaza, as well as the effects of climate change.
However, relief appears to be on the way after unprecedented summer heatwaves. Monsoon rains in the Indian subcontinent have picked up in July, likely erasing a rain deficit that parched fields in the world’s top rice supplier.
The World Meteorological Organisation forecasts that El Nino conditions, which fuelled a rise in global temperatures this year, will transition to La Nina from July onwards, bringing plentiful rains.
This is expected to favour growing conditions for crops in India and Southeast Asia, which are major rice exporters. India has already indicated this month it would relax export curbs on certain rice varieties, likely reducing prices internationally.
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Along with cooling food inflation, an oil supply glut is expected to moderate or keep a lid on prices of the commodity. That follows Opec’s decision to end voluntary production cuts from October and signs of slowing demand from top consumer China.
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