Natalie Shomali, Staff Reporter, The Pawprint
The World Bank has warned that the ongoing war between Ukraine and Russia will lead to the most intense commodity shock the world has seen since the 1970s.
A recent forecast reported that the conflict led to a disturbance that will drive a great increase in prices for goods, including gas, wheat, and cotton.
The senior economist of the World Bank stated that they were “particularly worried about the poorest households since they spend a larger share of income on food and energy, so they’re particularly vulnerable to this price spike.”
He also included that energy prices are supposed to increase by over 50% in the future, causing house and business prices to increase alongside them.
In Europe, natural gas prices are expected to double next year, marking the biggest increase in prices out of all areas. They are set to fall again by 2024 but will remain 15% higher even then.
Oil prices will also continue to rise, with Russia providing 11% of oil worldwide.
The EU receives 40% of its gas and 27% of its oil from Russia but stated that European governments are attempting to “wean their countries off of supplies from Russia,” according to BBC.