Energy costs fuel inflation worries in Southeast Asia

The global oil crisis triggered by Middle East tensions has sparked inflationary alarms across Southeast Asia, with the poorest households among the most vulnerable, experts say.

"The conflict in the Gulf poses a big challenge to economies in Southeast Asia," said Frederic Neumann, chief Asia economist at HSBC banking group. "In particular, rising energy costs are likely to push up inflation across the region."

Poorer economies are especially hard-pressed in the current environment as they have fewer resources, both in terms of energy supplies and fiscal space, to address an energy price shock, Neumann said.