ASB urges businesses to review where they are exposed and prepare for ongoing volatility.
The worst is yet to come for New Zealand households feeling the impact of the Middle East conflict, ASB warns.
The conflict is entering its 12th week and the Strait of Hormuz closure is impacting fuel prices around the world.
"While the immediate effect has been higher fuel prices, that's only one piece of the puzzle," ASB senior economist Kim Mundy said.
"The broader story is how the entire cost shock - which includes fertiliser and petrochemicals - spreads through supply chains, lifting the cost of manufactured goods, packaging, freight and farm inputs, and the flow-on effects of that to consumer spending."
