Sky-high shipping costs pose upside risk to inflation

Our inflation forecasts already incorporate some passthrough of pipeline pressures including higher shipping costs to consumer prices. But given that maritime shipping costs have never surged anywhere near as much as they have done during the past year, the full extent of the passthrough is difficult to predict. Our sense is that inflation risks staying higher for longer than we and others anticipate in the coming year.
Simon MacAdam Senior Global Economist
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