The Russia-Ukraine conflict has triggered a seismic shift in global markets, driving commodity prices to levels not seen in decades, according to a new World Bank report. Energy, food, and fertilizer prices are projected to remain historically high through 2024, threatening supply chains and economic stability worldwide.
Energy and Food Lead the Surge
Global energy prices are forecast to soar over 50% in 2022, with European natural gas prices hitting record highs. Wheat prices could climb by over 40%, exacerbating food insecurity in developing nations. The World Bank warns this could become the sharpest commodity shock since the 1970s oil crisis, with ripple effects across industries.
Implications for Businesses and Consumers
Rising costs for metals, fertilizers, and transportation are already impacting tech manufacturing, agriculture, and renewable energy projects. Emerging markets reliant on imports face heightened inflation risks, while startups grapple with volatile supply chains.
Analysts urge governments to diversify energy sources and strengthen food security strategies. The report highlights opportunities in sustainable alternatives, with solar and wind investments reaching all-time highs as countries seek to reduce fossil fuel dependence.
Reference(s):
World Bank warns of 'commodity shock' induced by Russia-Ukraine crisis
cgtn.com
