Basic food prices in military-controlled Kyaukphyu Township in Rakhine State have surged to historic highs as escalating clashes between the Myanmar military junta and the Arakan Army (AA) combine with a strict naval blockade to cut off essential supplies.

According to residents and local merchants, a single egg now costs 2,500 MMK (approx. $0.60 USD)—double its price in June—while a viss (1.6 kilograms) of garlic has jumped to 80,000 MMK ($20.00 USD) and large onions to 60,000 MMK ($15.40 USD).

Prices for fuel, cooking oil, and rice have similarly ballooned, leaving many families unable to afford basic staples.

Kyaukphyu relies almost entirely on sea and air routes for its commodity supply.

However, commercial cargo vessels from Yangon—which typically dock twice a month—have been halted since late June.

Merchants reported that cargo shipping requires direct authorization from the military regime in Naypyidaw, which has routinely denied access during active fighting without providing specific reasons.

"Whenever clashes break out, the ships stop coming, and prices immediately shoot up," a resident told Mizzima, noting that while commercial supply lines remain blocked, junta naval vessels dock regularly to deliver military reinforcements.

The economic crisis coincides with expanding AA offensives across Kyaukphyu Township, with heavy fighting reported near the Taung Maw Oo naval base, Ah Wa Taung, Sane, and Min Pyin. A source close to the ethnic armed group dismissed recent online reports that the AA had captured Tactical Command 3 at the Taung Maw Oo base, confirming that combat around the installation remains active and ongoing.

The Arakan Army currently controls over 14 of Rakhine State’s 17 townships, as well as Paletwa Township in neighboring Chin State, with active combat expanding toward the borders of Ayeyarwady and Magway regions.