The war against Hamas in Ukraine and Israel was not enough, now there is a crisis in the Red Sea after the new US attack on Houthi rebels in Yemen. “There is a risk that rising geopolitical tensions in the Middle East will have a direct impact on Italian consumers through a series of price and tariff increases that could affect various sectors and cost families hundreds of euros,” said Assoutenti, who calculated increases of over 400 euros per day. per family per year. First of all, gasoline and bills are at risk.
Suez crisis, which goods are most at risk of price increases?
Due to the crisis in the Suez Canal, increases are expected in all import-related products. “This is a strategic route for Italy, where 40% of our import-export by sea reaches a total of 154 billion euros,” says Gabriele Melluso, president of the association. Due to military tensions, many ships passing through the Red Sea are forced to change route, resulting in “a strong increase in shipping costs and heavy delays in deliveries.” All this affects the final prices of goods and therefore the pockets of Italians.
Since the same applies to tankers carrying black gold, there is a risk that oil prices will rise again. Estimates suggest a hypothetical 10 percent increase in public price lists requested by distributors. The average price of green fuel could rise to 1,950 euros per liter, “+213 euros per family just for fuel supply”.
There is also a risk of an increase in energy bills, with gas prices on the Amsterdam TTF rising by almost 4 percent to 32 euros per MWh in the last few hours. “An increase in energy prices could halt the recent decline in electricity and gas tariffs, leading to an increase in bills with an estimated impact of up to +200 euros per family per year,” Melluso concludes.
In short, when fuel, bills and retail sales are taken into account, these increases could lead to a higher annual expenditure of 411 euros for a family with two children and have a +1 percent impact on inflation.
Source: Today IT
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
