Inflation wave strikes Asia, sound the alarm?

  The rising prices of foodstuff and energy in Asia has hit its largest economies such as China, India,

  Indonesia, South Korea and many others. 

  As reported by Bloomberg on April 13, 2022, the trend follows the rise of inflation in the United States, with

  the country’s March data showing inflation at its highest rate since 1981, further forcing the Federal Reserve

  to take action. 

  Meanwhile, yields of government bonds in the region has continued to rise this year, led by South Korea.

  The Asian benchmark yield index dropped 2.6% - the worse decline since 2013.     

  This has further strengthened signals from central banks of interest rates hikes in order to cool off inflation

  rates and boost national currencies by pushing capital away from the region. 

  Bloomberg’s chief economist Chang Su said the war in Ukraine has continued to drive up the prices of fuel,

  while the lockdown in Shanghai has left the economy of the world’s largest port city in tatters. 

  “Pressure on the Asian supply chain will continue to worsen in the next few months, which adds to the worry

  about a global inflation,” he said. 

  Russia’s invasion of Ukraine has also caused upheavals in the commodity market, which has not only led to

  the rising prices of fuel, but also threatens the supply of grains to the commodity’s largest consumers. Rising 

  fertilizer and transport costs have also driven the price of foodstuff to record highs. 

  The Asian Development Bank expects the rise in commodity prices to drive up inflation rates to between 1

  and 3.7% in Asia this year. 

  Australia and New Zealand Banking Group said as much as US$22.3 billion worth of investment left emerging

  markets in Asia in March, except for China. It was the worst sell-off since March of 2020. 

  Household consumption in the country with the world’s second largest population, India, has also taken a

  battering as foodstuff prices rose nearly 80%. 

  The reaction from the Reserve Bank of India became a hallmark of the pressure in Asia. The bank’s governor

  Shaktikanta Das, last week, said there has been a tectonic shift in the country’s macroeconomic projection

  and inflation rate since February 2022. 

  Russia’s invasion to Ukraine turned the previous narrative of calmer pressure on prices on its head. 

  “In our order of priority, we have placed inflation concerns above economic growth,” Das said. 

  Meanwhile, in China, producer prices rose 8.3% compared to last year, a decline of 8.8% from February, but

  still above the 8.1% median. 

  The Bank of Japan benchmark prices on fresh food rose 0.6% in February 2022 compared to the previous

  year, the fastest in the last couple of years, contributing to the rise in energy prices. 

  Central Banks in South Korea and Singapore will have their meetings this week. Economists are split on the

  prospects of the next rate hike in Seoul. Meanwhile, Singapore is expected to tighten regulation to combat

  imported inflation, especially energy. 

  Source: Bisnis 

  EU bans coal export, further drives up prices

  The price of coal spiked upwards by 18.8% last week and is expected to continue rising this week to pass the

  US$300 per ton mark. 

  On friday’s trade, the price of coal was 4.2% higher at US$299.5 per ton, the highest since March 15, 2020

  ($303.35 per ton) 

  Since the beginning of the month, the price of coal has experienced an upward trend. In general terms, the

  price of coal jumped 18.8 percent last week. The mineral has seen its price rise by 250.3% throughout the

  whole year. 

  The main reason for the rise is the conflict between Russia and Ukraine. Ukraine said Russian airstrikes

  have destroyed the airport in the city of Dnipro, the fourth largest city in Ukraine on Sunday (April 10, 2022)

  and that the fighting is still ongoing in Mariupol, South Ukraine. 

  “I believe that a new phase of the war has begun. We don’t know how much weaponry Russia has, but we

  are certain it still has plenty in reserves,” said Ukrainian President Volodymyr Zelensky, as quoted by

  Blooomberg, on Monday (April 11, 2022). 

  The attack has led to an embargo on Russian coal, a major global supply, by the European Union, and

  raises concerns about energy supply and the region’s resilience. 

  On Friday, the European Union passes a fifth sanction package on Russia, which includes a ban on all

  imports of Russian coal. This will affect a fourth of all Russian coal exports, costing the Kremlin an

  estimated US$8.7 billion in annual income for the Kremlin, according to data from the European

  Commission. 

  Russia has exported more than 200 million tons of coal in 2021, or about 17% of the global supply of

  coal, 50 million tons of which went to Europe. Germany, for instance, imported 55% of its natural gas from

  Russia, along with 50% of its coal and 35% of its oil, data from the German Ministry of Economic Affairs

  showed. 

  The EU embargo means that about 50 million tons of Russian coal would have to find new markets, while

  the EU would also have to look for alternative sources for its 50 million tons gap in coal, said Li, an analyst

  from an industry association. 

  “For both sides, the need is an emergency, which will surely drive up the price of coal for global exporters.

  However, the price of Russian coal might fall if they are in a hurry to sell off their energy. Either way, the

  global coal market is experiencing turbulence due to the disruption in the relationship between supply and

  demand,” said Li, as quoted by the Global Times on Monday (April 11, 2022). 

  In Indonesia, the rising prices of coal led by the embargo on Russian coal drove up the April 2022

  benchmark coal price to $288.40 per ton. 

  Source: Bisnis 

  House of Representatives passes landmark bill on sexual violence

  The House of Representatives passed on Tuesday a long-awaited bill to tackle sexual violence, aimed at

  providing a legal framework for victims to secure justice in a country where sexual abuse has often been

  regarded as a private matter.  

  A majority of lawmakers backed the bill at the plenary session in parliament, overcoming opposition from

  some conservative groups in the world's biggest Muslim majority country after six years of deliberation.  

  "We hope that the implementation of this law will resolve sexual violence cases," speaker of the House

  Puan Maharani said.  

  The bill has been broadly welcomed by activists, though some have objected to its limited scope, with

  only some sex crimes included and the omission of a specific clause on rape which the government has

  said will be included in other legislation.  

  "This is surely a step forward," said Asfinawati, a law expert at Jentera school of law, who has assisted

  sexual violence victims, while noting definitions of rape currently covered under the criminal code should still

  be made clearer.  

  Sexual violence complaints have been rising in Indonesia, where prosecuting sex crimes has been

  complicated by the absence of a dedicated legal framework, while victims' concerns of being shamed during

  questioning have deterred many from speaking up, according to activists.  

  The final draft of the law includes prison terms of up to 12 years for crimes of physical sexual abuse, both

  in marriage and outside, 15 years for sexual exploitation, nine years for forced marriage, which include child

  marriage, and four years for circulating non-consensual sexual content.  

  It stipulated that a court must compel convicted abusers to pay restitution and authorities to provide

  counselling to victims. Under earlier proposals, the legislation would have also covered abortion and provided

  a clearer definition of what constituted rape.  

  The National Commission on Violence Against Women (Komnas Perempuan) and civil society groups first

  proposed the idea of legislation a decade ago and a bill was submitted to the house four years later.  

  In January, President Joko "Jokowi" Widodo told his government to expedite new legislation, which seeks to

  make it easier to build cases and secure convictions.  

  One party in parliament, the Islamist Prosperous Justice Party (PKS), had objected to the bill, saying it should

  regulate against extramarital sex and had called for a ban on sexual relations based on what it described as

  "deviant" sexual orientation. 
 

  Source: Reuters