U.S. Economists Predict Inflation to Continue Rising Amid Russia-Ukraine Conflict: Report

by Michael Freeman

Inflation has been a topic of discussion and an issue in the United States economy for some time now. Unfortunately, economists predict this trend will continue amid the RussiaUkraine conflict.

CNBC reports we can expect food and gasoline to continue to rise in a recent report. Our economy has felt the sting of climbing prices for two years and the Russia-Ukraine conflict likely won’t change that. However, the economy itself should be fine. Wells Fargo chief economist Jay Bryson spoke to CNBC and doesn’t think we should expect anything like a recession to occur.

“What we’ve seen is oil prices have gone up, and equity prices at least initially retreated on all of this. Together, that’s a mild — stress mild — stagflationary hit to the economy,” Bryson said. “It’s going to push inflation higher than it is, and it’s probably going to slow growth. But it’s probably not enough to push the economy into recession.”

Inflation is at its highest since the 1980s, with energy commodities and grain prices climbing. This trend continued to an even sharper degree over the past few weeks. The conflicting nations frequently export agriculture and things like gas, which should sadly take a toll on our economy. Nonetheless, us bouncing back from lower COVID cases seems to be helping.

“Higher gasoline prices — that will affect consumer confidence. Does that mean the consumer is going to lock down spending? Probably not,” Bryson said. “Given the fact that omicron is receding and things are opening up, I think that’s a countervailing force.”

The bottom line is neither Russia nor Ukraine are huge economic forces for the United States. Though we will likely feel economic repercussions and rising inflation, it isn’t a doomsday scenario.

Rent Prices are also Rising and Leading to More Inflation

As one might expect, no one factor is responsible for rising inflation in our country. If you rent, you’ve likely noticed prices have also been going up, which is contributing to higher prices elsewhere.

The Washington Post discussed the issue, stating there are a few reasons rent prices are going up and leading to even more inflation. First, as COVID cases continue to decline, more people want to move and live on their own. Additionally, a multitude of new rentals has stalled production. As you might have guessed, that led to another problem: a competitive housing market.

Another notable problem is rent freezes and other measures expiring. Early in the pandemic, many cities placed limits on rent increases to help those in need but now they are going away. Finally, renters are wealthier. With people making more money, they have the capital to compete for the limited renting and housing available.

Economists believe rent prices will continue to climb through 2022