How the Russian and Ukraine crisis will see the cost of living spiral in the UK

Russia and Ukraine have huge natural resources which are used in a huge variety of consumer products in the UK.

With the Russian invasion of Kiev and other Ukrainian cities the supply of these goods are likely to be reduced as the UK looks to increase sanctions against Russia.

Associate Professor Steven McCabe, a political economist at Birmingham City University, has warned this will cause further price hikes in the UK, which is already facing a cost of living crisis.

In particular fuel, gas prices, wheat and vital minerals used in key manufacturing processes are at risk.

Bread and pasta prices could also soar due to a reduced supply of wheat from Ukraine, which is known as the ‘breadbasket’ of Europe.

What has Professor McCabe said about the effect of the Russian conflict in Ukraine on the cost of living in his own words?

He said: “Ukraine, like the country invading it, has huge natural resources.

“Since the fall of Communism, we’ve become used to a steady supply of raw materials and basic foodstuffs from Russia and former ‘satellite’ states including Ukraine.

“We’re already seeing the impact of potential conflict: crude oil is up 8% to $105 a barrel. The price for next day delivery of gas is up 40%. This will mean we pay far more for fuel for our vehicles and heating our homes.

“Ukraine is the ‘breadbasket’ of Europe. The tensions in the Eastern European region has caused the price of wheat to soar by 20%. This will translate into higher prices for basic foodstuffs including bread and pasta.

“Additionally, Russia and Ukraine export a number of vital minerals including aluminium, copper, nickel, platinum, and palladium - the trading price of which have all increased and will inevitably cause prices of finished goods to rise.

“Unfortunately, given we’re in a cost-of-living crisis, conflict with Russia, even if only economic, will punish all UK citizens as much as it hurts ordinary Russians.

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