Inflation impact from Houthi rebels will be 'relatively small'

ANZ Senior Economist Adelaide Timbrell says the inflation impact from Houthi rebels disrupting Red Sea trade routes will be “relatively small”. “There is going to be some goods though, if they do rely on that shipping area, are going to see price rises,” she told Sky News Australia. “The kind of inflation that the Reserve Bank is the most worried about and is going to act on is inflation that is permanent or inflation that needs action in order to be reversed. “Something like this though, unless we see these shipping lanes closed permanently, is not going to have the kind of effect that will impact interest rates. “I think it will have a small effect on Australia’s inflation on a temporary basis.”