Red Sea crisis could lead to costlier food, inflation

Spreading ripples: A container ship berthed in Singapore. An estimated 90% of container ships have rerouted to avoid the Red Sea since December. — Reuters

SINGAPORE: With the festive season around the corner and the Red Sea crisis still playing out, observers say prices of goods here could rise, fuelling inflation.

Still, the analysts said any impact on inflation will not be as severe as during the Covid-19 pandemic, while supermarket chain NTUC FairPrice has pledged to keep prices stable for as long as it can.