LOC09:15
06:15 GMT
By Anvar Jache
WASHINGTON, March 11 (KUNA) -- Since Russia began its military assault on the Ukraine, the world economy was hit hard with energy prices soaring high.
While the coronavirus pandemic still casted its shadow over the world, the Russia-Ukraine crisis caused unprecedented inflation in the US last January, causing the highest annual increase in 40 years.
The price of gasoline in the US had skyrocketed last January, reaching USD 4.25 per gallon (one gallon equals 3.87 liters), the highest price for this commodity in the country's history.
Last Tuesday, President Joe Biden said that gasoline prices would increase further as sanctions against Russian oil and gas imports were imposed.
Prior to the conflict, President Biden expected that the rumbling tension between Russia and Ukraine would have a negative impact on US citizens.
Energy prices had surely been affected by the conflict, but its reach might also extend to other commodities including food.
Russia and Ukraine are amongst the world top producers of wheat, an important ingredient in the production of food essentials including bread and pastry.
Though the US, according to Forbes Magazine, was not dependent on wheat production from both parties of the conflict, the disruption of the global production and distribution chains would have an impact on America's food production nevertheless.
Forbes revealed that a source at US Department of Agriculture indicated that the conflict in the Ukraine would not have a great impact on food products in the country, on the other hand, an economic expert said that the hike in energy prices would lead to more inflation and an increase in food products further than people expect.
Other commodities such electronics would also see an increase in price and this was due to Russia being one of the world biggest producers of Palladium -- a chemical element used in the production of electronics components.
The entire hubbub had led Food and Agriculture Organization (FAO) -- a UN organization -- to announce last month an increase in the standard price of global food products such as plant-based oils and dairy products as a result of the conflict in the Ukraine. (end)
asj.gta