Prices of Products That May Increase

Russia’s invasion of Ukraine heaped fresh risks on a global economy struggling with soaring inflation, supply-chain snarls, and a rocky recovery from the pandemic.

Here are some observations:

 1. Fuel

Many European countries are heavily dependent on Russia's energy, especially on a number of important pipelines. Based on this dependence, the attitude of different countries towards the crisis is determined. Because of Russia's dependence on energy, European countries do not want to deviate from the international payment system Swift right now. Russia's gas supplies to Europe are now likely to be cut off completely. However, even a slight disruption in this supply can have a major impact.

2. Food prices

Russia and Ukraine supply more than a quarter of the world's wheat. Ukraine supplies more than half of the world's sunflower oil. But wheat is important because bread is the staple food of most people in the world. In the last few months, the price of flour in the country has increased by 10 taka per kg. As a result, the prices of bakery products have also gone up. In this situation, if the supply of wheat is disrupted, the price of wheat may increase further.

3. Transportation crisis

It is inevitable that rising fuel prices will increase transportation costs. Russia's rail link with China began in 2011. Already 50,000 trains have run on this route. However, this line has recently been removed from Ukraine. As a result, this communication is not likely to be disrupted due to the war. In any case, the effect will be on the common man.

4. Microchip

The biggest crisis in 2021 due to Corona was the microchip. But in 2022, the crisis was expected to end. But due to the crisis in Russia and Ukraine, the production of microchip crisis will increase. The United States, meanwhile, has threatened to cut off microchip supplies to Russia, while Russia is a source of essential microchip materials, such as neon, palladium, and platinum. Russia supplies 90 percent of the neon.