Global prices of fuel and fertilisers are likely to stay high for a longer period, according to a joint warning by the International Monetary Fund (IMF), World Bank, and International Energy Agency (IEA).
The agencies said recent tensions in the Middle East have disrupted energy supplies, pushing up the cost of oil, gas, and fertilisers. These increases are already affecting economies around the world, especially countries that rely heavily on imports.
They cautioned that even if key shipping routes like the Strait of Hormuz return to normal, prices may not fall quickly. Supply chains take time to stabilise, and any damage to infrastructure or delays in production could keep costs elevated.
The impact is likely to be felt more in developing and low-income countries, where higher fuel prices can strain budgets and increase the cost of living. Rising fertiliser prices are also a concern, as they can make farming more expensive and affect food production.
This could lead to higher food prices, adding to the financial pressure on households. Businesses that depend on fuel and fertilisers may also face rising costs, which could slow down economic growth.
The agencies said they are working with governments to manage the situation, offering support and guidance where needed. However, they also stressed that uncertainty remains high, and global markets are still adjusting to the disruptions.
Also Read: Adani cargo shift plan draws US scrutiny