Prices of Essential Goods Could Rise Due to War: Here's the Explanation

Jakarta – The war involving Iran, Israel, and the United States is reportedly beginning to have a tangible impact on people’s wallets and shopping enthusiasm. How could it not? From the prices of food products to everyday necessities, reports indicate increases.

The rise in energy prices due to the conflict is triggering a chain reaction in the global supply chain. Production costs are increasing because raw materials such as plastics and chemicals are becoming more expensive.

As a result, the prices of consumer goods are also being pushed upwards, even in countries far from the conflict zone. The war, which started on 28 February, has triggered one of the worst disruptions to oil and gas supplies in modern history.

Disrupted access to the Strait of Hormuz and damage to infrastructure such as oil refineries in the Middle East, which are estimated to take years to fully recover, are the root causes.

Most plastics are produced from oil or natural gas, which is processed into chemicals and then converted into polymers for various needs. From food packaging to textiles like polyester.

In Europe, the price of PET plastic used for beverage bottles and food packaging rose 15.4 per cent in mid-March compared to the previous year. Meanwhile, in North America, polyethylene prices surged around 29 per cent year-on-year.

“Plastics are at the core of all this,” said Steve Zurek, vice president of NielsenIQ’s advanced analytics team, as quoted from Reuters on Tuesday, 5 May 2026. “Especially in household and personal care categories, because many use plastic bottles and tubes.”

The increase in packaging prices has a significant impact because packaging costs typically account for about 5 per cent to 15 per cent of a product’s total production costs. Data from NielsenIQ shows that the average price of food items in the United States rose 2.9 per cent in the four weeks since the conflict began until 28 March.

Economists estimate that this inflation figure only reflects the initial impact of the oil price surge. In other words, price pressures could still increase in the coming months.

The effects are expected to be increasingly felt in Asia, which is the world’s centre for the petrochemical industry. Countries such as Japan, South Korea, Singapore, India, and China are preparing to face rising inflation.