Disturbing world events, with the Russian invasion of Ukraine at the forefront, have caused energy prices to soar to record levels, according to the World Bank.
The international financial institution predicts the price of oil will rise by up to 50 percent in 2022 and remain at such historically high levels for two years.
World Bank vice president Indermit Gill calls this the “largest commodity shock” the world has experienced since the 1970s.
Prices of non-energy commodities, such as food and metals, have likewise increased, with an estimated rise of at least 20 percent this year.
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In the Philippines, a net importer of oil, the surging global prices have pushed inflation to 4.3 percent this year, which is above the 2 to 4 percent target range of the Bangko Sentral ng Pilipinas.
If coupled with low economic growth, the World Bank warns that the high inflation could lead to stagflation.