In an interview, SMU Assistant Professor of Finance (Education) and Director of SMU’s Financial Literacy, Inclusion, and Technology Programme Aurobindo Ghosh said the recent uptick in inflation is driven by rising oil prices, exacerbated by disruptions linked to the closure of the Strait of Hormuz, through which about 20% of global oil and gas flows. He added that price pressures are expected to persist. On the impact of inflation on export-oriented firms, Asst Prof Ghosh noted they face almost a double or triple whammy, including rising employment costs in foreign currencies, and suggested that more support for the domestic economy could help cushion the impact on businesses.
