Inflation Was Already Skyrocketing Before the Russia-Ukraine Conflict
There's no doubt that the invasion will make economic matters worse, but is it truly to blame for record-high inflation?
Editorial Team
March 11, 2022
Photo by engin akyurt / Unsplash
In February, inflation reached 7.9%, a four-decade high. According to some analyses, current inflation costs the average American household nearly $300 per month.
Percent changes by category:
Used cars and trucks +41.2%
Gasoline +38%
Energy +25.6%
Electricity +9%
Food +7.9%
Ties to the war: The consensus is that the conflict in Ukraine will worsen our current inflation crisis. Russia plays a significant role in global energy and other commodity markets. With its recent retaliatory export bans, supply will decrease, demand will remain high, and prices will soar.
Russia is a major exporter of oil, metals, coal, wheat, fertilizer, and more.
Biden administration blames Putin: Inflation has been steadily rising under President Joe Biden. Despite the recent February numbers depicting America’s rates before the Russia-Ukraine conflict, the White House is calling it Vladimir Putin’s “price hike:”
“Today’s inflation report is a reminder that Americans’ budgets are being stretched by price increases and families are starting to feel the impacts of Putin’s price hike.”
Big picture: As it moves to approve a $1.5 trillion spending package, the Biden administration blames Putin for record-high inflation rates.
Reply