JP Morgan warns that Red Sea terrorist attacks driving up shipping costs, inflation

<p>JP Morgan is wary of the impact of terrorist attacks in the Red Sea on the price of shipping and subsequently on inflation.</p><p>JPM say that the "renewed increases in global shipping costs may actually add to consumer price inflation over the next several months".</p><p>With implications for inflation globally:</p><ul><li>"would reinforce our expectation for progress on reducing global core CPI inflation to stall this year”</li></ul><p>JPM cite the 30% drop in ship traffic through the Suez Canal since the middle of last month. The added 10+ days of thus transiting around Africa impacts around 20% of global container volumes that normally head through the Canal.</p><p>***</p><p>Earlier:</p><ul><li><a href="https://www.forexlive.com/news/houthi-militias-launch-biggest-attack-to-date-on-merchant-vessels-in-red-sea-20240110/" target="_blank" rel="follow" data-article-link="true">Houthi terrorists launch biggest attack to date on merchant vessels in Red Sea</a></li></ul>

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