Global inflation to rise because of Red Sea tensions: OECD
Increasing shipping costs in the wake of the ongoing tensions in the Red Sea could impede the fight against inflation in the world, the Organization for Economic Co-operation and Development (OECD) has said.
Higher shipping costs due to the Red Sea crisis could add 5% to import costs incurred on OECD members, said the Paris-based group in its latest economic outlook on Monday.
The Organization estimates that the significant rise in seaborne freight rates could increase import price inflation across its 38 member states by around 5%.
That could add 0.4% to overall price rises after a year, the OECD added.
The report come as the Yemeni National Army is targeting Israeli-linked ships to support the people of Gaza and to pressure the Zionist regime to put an end to its war and siege on the enclave.
The US and Western countries have formed a maritime coalition in an effort to target various parts of Yemen under the pretext of countering the Yemenis.
The clashes have increased tensions in the region, creating serious problems for international shipping.