Trade

Houthi rebels’ Red Sea attacks fan fears of inflation revival

Inflation was expected to moderate this year - now manufacturers fear vioence in the Red Sea could scupper that prospect

A cargo ship 'Galaxy Leader', co-owned by an Israeli company, being hijacked by Iran-backed Houthis from Yemen in the Red Sea on November 20, 2023. Picture: Houthis Media Center via Getty Images

Soaring shipping costs and a jump in oil prices are stoking worries about a revival of inflation pressures around the world.

Only days into a 2024 that was meant to be the year inflation dissipated, manufacturers and retailers are again juggling delays and facing higher expenses as persistent attacks by Houthi rebels in the Red Sea rattle a major shipping route through the Suez Canal. Ocean freight rates for goods from Asia to Europe have ...