Jakarta –
Russian President Vladimir Putin’s decision to attack Ukraine will see inflation rise more quickly in decades. Economists estimate that there will be many economic impacts resulting from Russia’s attack on Ukraine.
The economic impact in question is making the prices of energy supplies, agricultural products, gasoline, and food more expensive.
“Inflation is likely to peak at the highest level when we predicted it a few days ago,” said Ben May, Global Macro Researcher at Oxford Economics.
Here are some supplies whose prices are increasing:
1. Oil
The current global oil price has reached its highest level since 2014, which has soared above US$ 105 or Rp 1.5 million (exchange rate 14,300) per barrel since Thursday (24/2/2022).
In the United States (US), the price of oil is close to US$ 100 or Rp. 1.4 million per barrel. In addition, the average price for one gallon of gas also rose to US$ 3.54 or Rp 50 thousand compared to last year’s US$ 2.66 or Rp 38 thousand.
2. Metal
Metals such as aluminum are used in thousands of products around the world, such as power meters and BMW’s state-of-the-art cars, as well as food and beverage cans.
Aluminum prices in London also jumped to their highest price since Thursday. This is because Russia is a major producer of aluminum parts of which less than half of the world is available.
“Russia is a major producer of metals including aluminum and nickel and is also a substantial producer of copper,” said an analyst at S&P Global Platts.
3. Food
Global food prices are approaching their highest level in 10 years. The Russia-Ukraine conflict has worsened the economic situation after the world was hit by the COVID-19 pandemic.
Russia and Ukraine are the world’s largest exporters of wheat. In addition, they also export vegetable oil and corn.
Since last Thursday, wheat prices have been at their highest level since 2012. In addition, the price of corn and soybeans also jumped higher.
See also ‘Internet in Ukraine Had Disruption After the Russian Attack’:
(fdl/fdl)
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