US official sees a little impact of the Red Sea disturbances on inflation rates

On Sunday, an American official downplayed the impact of the disturbances taking place in the Red Sea on inflation rates.

The US energy envoy, Amos Hockstein, said that the cost of diverting ships to avoid possible attacks in the Red Sea is logistical rather than inflationary.

According to CNBC, he added, in statements: The United States continues to work to mitigate the impact of risks in the region.

He explained that there is a problem related to (consumer) morale, as prices rose slightly, noting that ships have to travel a greater distance.

He continued: “It is more of a logistical cost than an actual cost. Costs are rising, but the inflationary effects are relatively weak.”

On Friday, the White House downplayed the effects of the risks taking place in the Red Sea region, as well as the risks coming from China, on the American economy.

While Lael Brainard, Director of the National Economic Council at the White House, confirmed that her country “risks being exposed to some extent to the economic slowdown in China and shipping disruptions in the Red Sea,” she stressed that “the risks appear to be under control.”

The American official added, in statements to reporters on Friday, saying: The situation of the American economy calls for optimism.