Wednesday marks the 1 year anniversary of the Russian invasion of Ukraine and subsequent war. During that time, the U.S. has spent over $100B in aid for Ukraine, which has included “light multiple rocket launchers known as HIMARS, Patriot missile systems, Bradley fighting vehicles, Abrams tanks, and more.” Over the weekend, Sen. Tommy Tuberville (R-AL) said it will take 7 years to re-build the supply of arms the U.S. military has sent. But the war has effected far more than just the U.S., it has caused food and fuel prices to sky rocket across the world. Supply of grain, fertilizer and energy has been crippled in many regions and uncertainty looms over the global economy.
In Egypt, “meat and eggs have become a luxury,” and in the U.S. there has been “a painful surge in consumer prices, fueled in part by the war’s effect on oil prices.” Some experts are optimistic though, as Adam Posen, president of the Peterson Institute for International Economics, says the war “is a human catastrophe, but its impact on the world economy is a passing shock.’’
According to the Associated Press:
Punishingly high food prices are inflicting particular hardship on the poor. The war has disrupted wheat, barley and cooking oil from Ukraine and Russia, major global suppliers for Africa, the Middle East and parts of Asia where many struggle with food insecurity. Russia also was the top supplier of fertilizer.
While a U.N.-brokered deal has allowed some food shipments from the Black Sea region, it’s up for renewal next month.
In Nigeria, a top importer of Russian wheat, average food prices skyrocketed 37% last year. Bread prices have doubled in some places amid wheat shortages.
“People have huge decisions to make,” said Alexander Verhes, who runs Life Flour Mill Limited in the southern Delta state. “What food do they buy? Do they spend it on food? Schooling? Medication?”
