How Will the War in Ukraine Affect Your Finances?
Ever since Russia began their invasion of Ukraine, countries around the world have sought to sanction Russia for their behavior. Because half of all international trade is done in US dollars, US actions have an outsized impact on the Russian economy. However, US citizens are also feeling the effects of the war in different ways.
Russia is the 2nd largest producer of crude oil in the world. Because so many countries are refusing Russian oil, gas prices are rising. In the US, a gallon of gas averaged $4.42 on May 12. Beyond gas, Ukraine is one of the world’s largest grain producers. War is preventing them from feeding the world, so expect higher prices on grain, bread, pasta, and more.
The war is also causing uncertainty in financial markets. April 2022 marked the worst April the stock market has seen in decades. Cryptocurrency is also more volatile than normal.