Global Trade Instability Could Push Consumer Prices Up By 20% Percent in 2025

Household essentials, including food and beverages, might see price hikes of up to 20% in 2025 amid ongoing global supply chain challenges, according to industry experts. The Chartered Institute of Procurement and Supply (CIPS) has issued a stark warning about potential cost increases affecting everything from electronics to petroleum products.

The mounting pressures stem from several critical factors, including heightened Middle Eastern tensions, supply route disruptions, and persistent cybersecurity threats. These challenges are creating a perfect storm for price escalations across multiple sectors.

The situation in the Red Sea has become particularly problematic, with Houthi rebel attacks forcing major shipping companies to redirect vessels around the Cape of Good Hope. This alternative route significantly increases both transit times and operational costs, ultimately affecting consumer prices.

The potential return of Donald Trump to the White House adds another layer of complexity to the global trade landscape. His proposed 10% blanket tariff on global imports and a substantial 60% levy on Chinese goods have already prompted companies to accelerate their shipping schedules, attempting to outpace these potential policy changes.

CIPS’s recent member survey reveals that businesses could face cost increases ranging from 5% to 20% for essential materials such as machinery, chemicals, and computer components. These increases exclude the potential impact of new tariffs, suggesting even steeper price rises for consumers.

Ben Farrell, CIPS Chief Executive, emphasises the gravity of the situation: “Multiple strategic challenges are emerging that will likely disrupt the smooth flow of goods and services. Without effective management, consumers stand to bear the brunt of these disruptions disproportionately

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