Soaring Prices: All You Need to Know

The world is preparing for an era of rising energy and food prices driving up costs almost everywhere. Governments aim to ease the burden.

• The Russian attack on Ukraine has accelerated a development that was already in motion: Rising energy prices and broken supply chains are driving up costs in all sectors of the economy.
• Before the war prices for semiconductors and other essential elements of modern industrial prodution had skyrocketed. At the same time rising costs for oil and gas increased the burden on companies.
• Russia’s invasion has made the situation for global economies even worse. Energy prices have soared, since Russia is Europe’s most important single supplier of oil, coal and gas.
• Russia and Ukraine are among the biggest exporters of wheat. The war is disrupting agricultural production thus driving prices for food. Experts have warned there might be hunger crises in Africa.
• The EU, the UK and the US are desperate to ease the burden for their citizens. Huge programs are being set up almost everywhere and subsidies for energy prices are being introduced.
• The financial burden on governments and taxpayers could last for years if not decades. Most countries had just recovered from supporting their business during the Covid pandemic.