World Bank: Energy Prices to Continue Rising Through First Half of Next Year

[Photo by Xinhua News Agency]

[Asia Economy Reporter Park Byung-hee] The World Bank has warned that steep energy price increases will continue until the first half of next year, posing a risk of global inflation.

In a report released on the 21st (local time), the World Bank stated that energy price increases are expected to ease only after supply chain tensions subside in the second half of next year. It noted that energy prices in 2022 could rise more than 80% compared to this year, acting as a serious inflationary factor.

Aihan Koje, Director of the Development Prospects Group, pointed out in the report, "Rising energy prices are a significant short-term risk to global inflation, and if sustained, they could pressure the growth of energy-importing countries."

He also added, "The rise in consumer goods prices is exceeding expectations," and "Recent price volatility will complicate policy decisions by countries trying to escape recession."

The World Bank forecasted that crude oil prices, which rose to around $70 per barrel this year, will surge to $74 next year.

Metal prices are expected to increase by 48% this year and then decline by 5% next year. Agricultural product prices, which surged 22% this year, are projected to slightly decrease next year.

In particular, some consumer goods prices are predicted to rise even more than this year, showing the largest increase in the past decade.

Factors such as the recently worsening global logistics crisis, climate change, and the spread of the novel coronavirus (COVID-19) were also cited as causes of price instability.

The World Bank recommended that countries focus on developing renewable energy and reduce fossil energy use, stating that global climate change could cause changes in both energy supply and demand.

This content was produced with the assistance of AI translation services.