Mar 11, 2022

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?
Inflation Was Already Skyrocketing Before the Russia-Ukraine Conflict
Photo by engin akyurt / Unsplash

Get smarter about politics.

Our daily brief brings you need-to-know news and insights you won’t find in the mainstream media. 100% free.

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.

Great! You’ve successfully signed up.
Welcome back! You've successfully signed in.
You've successfully subscribed to Upward News.
Your link has expired.
Success! Check your email for magic link to sign-in.
Success! Your billing info has been updated.
Your billing was not updated.