Here’s how the Russian-Ukrainian conflict is driving up prices for Americans
- The Russian-Ukrainian conflict is disrupting commodity markets and driving up the prices of many key commodities.
- Sanctions and market disruptions have affected products ranging from crude oil to fertilizers.
- This is likely to cause a spike in inflation for gasoline, food, cars, and other goods in the United States.
Economists had hoped that inflation would decline by the end of 2022. Russia’s invasion of Ukraine upset those forecasts.
Prices for all kinds of commodities are soaring as the conflict rattles global markets. The United States, United Kingdom, European Union and other allies have imposed historically harsh sanctions on Russia for its attack on Ukraine, in a bid to invoke enough economic pain to push Russia back. at the negotiating table. On Tuesday, President Joe Biden announced that the United States would go further and ban imports of Russian oil, natural gas and coal, severing ties with the country’s huge energy sector.
The Russian economy has certainly felt the pressure. The past few weeks have seen the value of the rouble fall to record lows, the country’s stock market crash and Russians frantically withdraw money from banks.
There were also a lot of fallouts. Punitive measures targeting major Russian industries have pushed up the prices of key commodities like oil and natural gas. The attacks also led to a sharp rise in wheat prices, with Ukraine and Russia being the main grain producers.
These gatherings quickly drive up prices for Americans. Inflation was already at four-decade-pre-conflict highs, and Russia’s invasion all but guarantees that price growth will pick up before it cools.
It’s where Americans are set to feel the heat the most, from new cars to your favorite cereal.