0015 GMT - In a scenario of early stabilization of the Middle East conflict, inflation in APAC's developing economies is forecast to rise to 3.6% in 2026 from 3.0% in 2025, mainly on higher energy prices, ADB says. The rate will then cool to 3.4% next year as commodity prices normalize, it projects. However, with disruptions now looking more likely to last longer than expected, ADB sees a material increase in upside risks to inflation. Longer-lasting disruptions to energy and commodity markets will have more severe repercussions, including through higher fertilizer prices that raise agricultural production costs and feed into food prices. If tensions last through 3Q, ADB's analysis suggests that inflation would reach 5.6% in 2026, before slowing to 2.8% in 2027.(fabiana.negrinochoa@wsj.com)
(END) Dow Jones Newswires
April 09, 2026 20:16 ET (00:16 GMT)
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