Middle East / Red Sea turmoil: Impact on inflation, oil prices, shipping costs ...Middle East

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Middle East / Red Sea turmoil: Impact on inflation, oil prices, shipping costs
Via a Capital Economics note on how Middle East turmoil, specifically the rerouting of ships away from the Red Sea, could impact inflation We expect the recent rise in oil prices to prove temporary, goods shortages should be avoided, and shipping costs do not look set to surge Even if shipping disruption did cause a significant increase in firms’ input costs, soft demand and replenished stocks have weakened their pricing power to pass them onto end consumers production of commodities won’t be affectedThe materials will arrive, they will just take longer to get there This article was written by Eamonn Sheridan at www.forexlive.com.

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