The cost of manufacturing household goods in Asia is being driven even higher by a surge in energy and commodities prices triggered by Russia’s invasion of Ukraine, adding fuel to the fastest global inflation breakout in decades.
The warnings from Asia, the world’s biggest manufacturing region, underscore how the war in Ukraine is piling pressure on factory managers that were already grappling with supply snarls from the pandemic. The United Nations estimates around 41% of global exports are sourced from the region.
Prices are soaring for raw materials that go into everyday household goods. Copper, used in appliances and wiring, has reached new highs. Nickel, used in lithium-ion batteries, has spiked to a record, while other raw materials including aluminum and palladium have also jumped.