How Gas and Grocery Prices Could Spike Due to Conflict in Ukraine

Tags: Currents Media, Russia, Ukraine, World News

Currents News Staff

Gas, homes, and cars could cost you even more soon. Supply chain issues have led to price increases already.

If Russia further invades Ukraine, you might start paying even more.

That’s because it’s not so easy to export goods from a war zone.

Here are four ways a Russian attack on Ukraine could affect you financially.

One – you might have to pay more for gas. Russia is the world’s second largest producer of oil and prices are already spiking.

Some analysts say conflict in Ukraine could send them over one-hundred dollars a barrel. Prices haven’t been that high in seven years.

Two – global food prices could increase. Russia is the world’s top exporter of wheat. Ukraine produces wheat and corn.

“If any conflict which disrupts those flows will help to only tighten agricultural markets, uh, quite significantly,” said Warren Patterson, Head of Commodities Strategy for ING Bank.

Three – you might have to pay more in interest on your next loan. The Federal Reserve is already hinting it’ll raise interest rates. Increased inflation could add to its motivation.

“This is not a good situation. We have to reassure people that, uh, we’re going to defend our inflation target, and we’re gonna get inflation back to two percent,” said James Bullard, President and CEO of St. Louis Federal Reserve.

Four – you might take a hit to your stock portfolio. Markets fell Monday when the U.S. said it would close its embassy in Ukraine. Investors knows the world economy is connected.

“The whole world has become dependent on Russian petrol money. We’ll have to have a fundamental rethink of whether or not the price is worth it to be so dependent on Russian money,” said Sen. Chris Murphy.