The Russia, Ukraine conflict is becoming a bigger headwind for the global economy as it recovers from the COVID-19 pandemic.
rose in February by 7.9%, the highest since 1982, while producer prices jumped 10%, the highest on record.
The lion’s share of inflation is coming from energy prices. Oil closed at $104.70 last week and has gained over 39% this year pushing national gas prices to just under $4.30 per gallon, according to AAA. In California, prices are approaching $6 per gallon.
Policymakers also cut annual U.S. GDP estimates to 2.8% from 4%, in part because of the uncertainty tied to the Ukraine war."I think some of that is just an early assessment of the effects of spillovers from the war in Eastern Europe, which will hit our economy through a number of channels. Highly uncertain but, you know, you're looking at higher oil prices, higher commodity prices" said Federal Reserve Chairman Jerome Powell during his Q&A with reporters.
"We think that will weigh on GDP to some extent. So that's part of what moved the assessments down," he explained.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Russia-Ukraine live updates: Ukraine rejects Kremlin’s call to surrender Mariupol amid intense street fightingAs the conflict enters its 26th day, the Russian military is approaching a stalemate in many other parts of the country, including outside Kyiv, the capital city.
Read more »
Russia-Ukraine live updates: Russia pursuing 'strategy of attrition,' UK saysUKRAINE-RUSSIA LATEST: 🔷 Kremlin confirms it used hypersonic missiles in Ukraine 🔷 Ukraine says it has detained at least 562 Russian prisoners of war 🔷 At least 30 killed in strike on Ukrainian military base: witness
Read more »
Ukraine: Zelenskyy calls for peace talks with Russia in new video addressPresident Zelenskyy calls for peace talks with Russia without delay, warning Moscow that Ukraine can inflict losses that would be felt for generations
Read more »
YPG/PKK terror group reportedly fighting alongside Russia in UkraineYPG/PKK group is accused of abducting, threatening, and deceiving hundreds of vulnerable minors for recruitment and recent reports say hundreds of their militants are fighting for Russia in Ukraine.
Read more »
What impact will the Russia-Ukraine conflict have on the internet?“As these platforms and services disappear from Russia, it divides the world along a technological fault line,” geopolitical futurist Abishur Prakash notes
Read more »
Russia Says It Fired Air-Launched Ballistic Missile in UkraineRussia said it fired an air-launched ballistic missile on Ukraine in what may have been the first use of the new weapon
Read more »