How the war in Ukraine will fuel a sharp hike in inflation

With global economy hooked on fossil fuels economists are drawing parallels with the the oil shocks of the 1970s

Economists are warning Russia’s invasion of Ukraine will fuel a sharper rise in inflation, despite the rising cost of living having already hit the highest levels for three decades.

With Russia the world’s biggest natural gas exporter and second-largest for oil, the stakes are high in a global economy still hooked on fossil fuels – drawing parallels with the Yom Kippur war and oil price shocks of the 1970s which led to galloping inflation and economic crises worldwide.

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from World news | The Guardian https://ift.tt/0OEe4gU