Russia and its allies are taking steps this week to drive up global gas and food prices, and Americans may soon be feeling the strains on their wallets.
This week, Moscow announced that it will no longer allow Ukraine to safely export grain. Ukraine accounts for ten percent of the world’s wheat exports, and the decision has already caused the price in global markets to rise.
“I think it will drive inflation higher, particularly in those volatile food and energy categories,” said John Leer, Chief Economist at Morning Consult.
Gas prices have also begun to edge higher as Saudi Arabia is reducing their oil production, and U.S.-Iranian tensions continue to increase in the Middle East over merchant ship defense in the critical strait.