The economic effects of the Iran war may soon go beyond gas prices, with a second wave of inflation expected to affect a wide range of everyday goods. Analysts warn that what consumers are currently seeing is only the initial phase of a broader pricing shift.
A New Phase of Inflation Driven by Petrochemicals
While fuel costs reacted quickly to the conflict, a more gradual pressure is building through petrochemicals, which are derived from oil and natural gas. These materials are used in the production of more than 95% of consumer products, making them a central factor in future price increases.
As production costs rise, companies may begin adjusting prices across multiple sectors, spreading inflation throughout the economy.
Delayed Effects Across Everyday Spending
This second wave is expected to appear with a delay of several months, unlike the immediate spike seen at the pump. The increase will likely come in stages, affecting different categories at different times.
This gradual process can make the overall effect harder to detect at first, even as household budgets begin to feel the pressure.
Groceries and Packaging Costs Increasing
Food prices are among the first areas expected to be affected. Beyond raw ingredients, the cost of plastic packaging is rising due to higher petrochemical prices.
Estimates point to a 3% to 4% increase in food and beverage costs over the coming months, reports Businessinsider. At the same time, rising aluminium prices may add further pressure on packaged goods such as canned products.
Household and Personal Care Products Impacted
Products such as cleaning supplies, detergents and toiletries are also exposed. These items rely heavily on plastic materials and chemical inputs tied to oil markets.
Some projections suggest that production costs in this category could rise sharply, with potential increases reaching double digits before being passed on to consumers.
Clothing and Footwear Facing Higher Costs
The fashion industry is closely linked to oil through synthetic fibres like polyester and nylon, which are widely used in manufacturing. Around 60% of clothing depends on these materials.
Footwear production is also affected, as a large portion of materials used in shoes is derived from petrochemicals. These cost increases could become visible in retail prices within months.
Healthcare and Pharmaceutical Pressures
The healthcare sector is not immune. Packaging for medicines, including bottles and blister packs, depends on petrochemical inputs. Some pharmaceutical components are also impacted by supply disruptions.
In addition, logistical challenges linked to the conflict may increase transport costs and affect supply chains, adding further pressure on prices.
