US consumers could pay more for gas, groceries after Russia invades Ukraine
MANKATO, Minn. (KEYC) — Americans could be paying more at the gas pump and grocery stores as a result of Russia’s invasion of Ukraine.
“When we put sanctions on the pipelines, that means countries like Germany are going to have to go someplace to get their fuel, and, also, we have much more competition for limited resources around the world, which means it’s going to drive up prices – it affects Americans that way,” KEYC Chief Political Analyst Greta Van Susteren explained.
This conflict comes as the United States is still trying to recover from the COVID-19 pandemic’s impact on the economy.
“Inflation is higher in the United States in the last year than it has been since the early 1980s,” Van Susteren continued. “So now you add on to the fact that we are having this conflict or war, however you want to describe it, with Russia, which is one of the three biggest producers of natural gas in the world.”
Inflation is one of the biggest economic problems Americans are facing right now.
“Inflation will get worse because of this situation. Then again, it just happened last night, so it is really hard to tell. It might not hit so much here from what I have read and I’ve heard, but it’s probably going to hit Europe harder,” described Daniel Hiebert, professor and director of the Financial Planning Program at Minnesota State University, Mankato.
International conflicts and financial markets have been connected for centuries.
“You look at all the different wars and calamities and casualties that have been out there. There has always been an impact on the market. But if you look at just recent events going all the way back to Pearl Harbor, where the market was down at its lowest point by 20%, it rebounded within 2 years,” Hiebert explained.
President Joe Biden addressed Russia’s attack on Ukraine Thursday afternoon during a press conference.
“As we respond, my administration is using the tools, every tool at its disposal to protect American families and businesses from rising prices at the gas pump. You know, we’re taking active steps to bring down the cost and American oil and gas companies should not, should not exploit this moment to hike their prices to raise profits,” President Biden said.
President Biden also announced a new, stronger round of economic sanctions on Russia from the U.S. and Western Allies.
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