The UK economy may see inflation rise by 0.2 to 0.5 per cent due to commercial disruption caused by the Houthis in Yemen continuing to target vessels on the Red Sea, according to Whitehall calculations.
Chancellor Jeremy Hunt acknowledged recently that the military action in one of the world’s busiest shipping lanes could have a negative effect on the domestic economy due to rising prices. “It may have an impact and we’ll watch it very, very carefully”, he said.
