Economy

Analysis: As Houthi Red Sea attacks strangle supply chains, are we facing pandemic-era inflation?

Attacks by Houthi rebels on the critical Red Sea trade route could reignite inflation in 2024

Experts not only called the peak of interest rates in recent months, but started aggressively predicting they would be cut back early this year. Picture: Sayed Hassan/Getty Images

The end of year optimism that the worst of inflation was over and interest rates would fall sooner rather than later is fast fading while the attacks on ships in the Red Sea have raised further concern in that regard.

Attacks by Houthi rebels on commercial ships in the Red Sea show no signs of abating with a commodity-carrying Greek ship struck on Tuesday following an attack on a US vessel on Monday.

Since the ...