Energy shortfalls sparked by the Iran war drove intensifying inflation worries worldwide.

Australia’s central bank raised interest rates and prices in the Philippines increased far faster than expected, while public companies’ warnings of having to pass on costs to consumers rose to their highest level since Russia’s 2022 invasion of Ukraine. HSBC, meanwhile, warned in a note to clients that food costs in particular were likely to rise thanks to the energy shock sparked by the conflict and the expected onset of the El Niño climate phenomenon.

European and US central banks have held off on rate hikes to avoid hurting growth and labor markets, but rapidly rising inflation could force them to follow Australia’s lead.