Inflation & Prices

Global Inflation Was About to Be Tamed. Now Red Sea Attacks Fan Revival Fears

US, UK lead airstrikes responding to Houthi attacks on ships
Pandemic price surge was on verge of being tamed in 2024

A ship transits the Suez Canal towards the Red Sea on January 10. Ocean freight rates for goods from Asia to Europe have more than doubled over the past four weeks. — A ship transits the Suez Canal towards the Red Sea on January 10. Ocean freight rates for goods from Asia to Europe have more than doubled over the past four weeks.
Photographer: Sayed Hassan/Getty Images

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By Enda Curran

January 12, 2024 at 4:46 PM UTC

This article is for subscribers only.

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 more than doubled over the past four weeks.