[ad_1]
Iran war could drive up costs for petroleum-derived products like clothes and crayons
The war in Iran has pushed gasoline prices up by 21 per cent in the past month causing the overall inflation to jump 2.4 per cent. But economists say inflation, other than gas prices, inflation is fairly stable — for now.
It might be hard to imagine the Iran war weighing on stuffed toys with names like Snuggle Glove, Bizzikins and Wobblies, but even plush playthings aren’t immune when oil shipments from the Middle East are constrained.
Like many soft toys, the creatures developed by a manufacturer in Fort Lauderdale, Fla., are made with polyester and acrylic — synthetic fibers derived from petroleum. Three weeks after the war started, suppliers in China notified Aleni Brands that getting the materials already was costing them 10 per cent to 15 per cent more, CEO Ricardo Venegas said.
“I think this situation demonstrates how much oil permeates throughout our system, and we can’t get away from it,” said Venegas, who founded Aleni Brands last year and is in the process of adding product lines.
“Who would have thought that the price of a toy would have a direct relationship with oil?”
It’s not just toys. Petrochemicals derived from oil and natural gas go into making more than 6,000 consumer products, according to the U.S. Department of Energy.
[ad_2]
Source link