Food inflation concerning for South and Southeast Asia in 2024

El Niño will impact the production of rice, coffee, and cocoa.

Food and beverage prices may decline in 2024 but inflation in South and Southeast Asia will not be a relief for consumers as climate crisis will continue to affect rice, coffee, and cocoa production.

“Unlike in 2022-23, inflationary headwinds will grow stronger in developing and emerging markets in 2024 as El Niño affects production of rice, coffee and cocoa,” read the report from Economist Intelligence.

Particularly, these Asian regions account for 90% of the global rice consumption. Households also earmark a high share of consumer spending on food and beverages, from 31% in India and 32% in Indonesia to 42% in the Philippines. 

“This will make them very vulnerable to food price rises. This in turn will dampen discretionary spending by Asian consumers at a time when many brands are looking to this region to compensate for slowdowns in Europe and the US,” read the report in part.