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.
Michael Strobaek, global chief investment officer at Credit Suisse, said the shock waves emanating from the Russian invasion amounted to the “dawn of a new world order” for the international economy, in which higher inflation and financial market volatility could be taken as given.
“Russia’s invasion of Ukraine marks nothing less than a shift away from the largely US/western-dominated world order that has prevailed since the fall of the Berlin Wall,” he…
