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

<p>Via a Capital Economics note on how Middle East turmoil, specifically the rerouting of ships away from the Red Sea, could impact inflation</p><ul><li>
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 </li><li>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
</li><li>production of commodities won’t be affected</li><li>The materials will arrive, they will just take longer to get there</li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.