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Xiao Mo: Red Sea problems will raise inflation by 0.7%

The cost of container shipping from Asia to Europe has tripled due to detours and Houthi attacks, partly due to the additional cost of ships detouring Africa。

红海问题将使通膨上升0.7%

On January 22, the situation in the Red Sea continued to ferment。U.S. Central Command revealed that the U.S. military has destroyed an anti-ship missile launcher of the Houthis in Yemen on the 20th local time。It is understood that this is the fifth time in the past week that the U.S. military has attacked the Houthi missile system "ready to launch an attack."。

In the Red Sea region near Yemen, the Houthis continue to attack ships, causing many to avoid the Suez Canal and choose to bypass Africa.。The move will add at least 4,000 miles to the range of cargo ships, adding more than 10 days to travel time.。The Houthis said the attacks were aimed at forcing Israel to end its military operations in Gaza.。

On January 15, an anti-ship ballistic missile fired by the Houthi forces in Yemen that day hit a U.S. cargo ship sailing in the Gulf of Aden。In response, Houthi spokesman Yahya Sareya said the force "regards all U.S. and British warships and vessels involved in the attack on our country as hostile targets."。

The cost of container shipping from Asia to Europe has tripled due to detours and Houthi attacks, partly due to the additional cost of ships detouring Africa。Although container shipping charges have yet to rise as dramatically as they did during the coronavirus pandemic, some retailers, such as IKEA, have issued warnings that avoiding the Suez Canal could delay the arrival of goods in stores.。In addition, some European car plants have had to temporarily suspend operations as they wait for parts from Asia.。

JPMorgan estimates that global consumer prices could rise by an additional 0% in the first half of the year if shipping disruptions continue.7%。This may exacerbate the inflation problem that is already a headache for countries.。

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