CHARLOTTE, N.C. — Russia's war on Ukraine and the swift financial backlash it's unleashed across the globe have had an impact on the world's economy.
But how much of what's going on in Eastern Europe will have an effect on Americans' wallets?
THE QUESTION
Will the war in Ukraine increase the price of goods we buy in America?
THE SOURCES
- James Crean, president of CREAN, Inc., a supply chain management logistics firm
- dun&bradstreet, a national data firm
THE ANSWER
Yes, the Russia-Ukraine conflict will increase the price of goods we buy in America.
WHAT WE FOUND
According to dun&bradstreet, 374,000 businesses across the world rely on Russian supplies. Ukraine suppliers help more than 241,000 businesses.
So with the war in Ukraine raging on, the supply chain suffers. Many Americans understand the impact of oil, but the effects of the crisis in Ukraine are far-reaching.
"As the cost of oil goes up, the cost, that's an input to everything, so the cost of everything goes up," Crean said. "In addition to that, wheat, corn, grains, and general grains that are used in to feed cattle to feed poultry. Those are also inputs."
Ukraine is the "breadbasket" of Europe, according to Crean. So if its exports are disrupted, European markets have to go elsewhere for supplies. And that creates more bottleneck issues for everyone.
But it's not just the prices at the grocery store that consumers will likely see increasing due to the Russia-Ukraine crisis.
"Even a lot of the metals and elements that are used in our...cell phones come from some of these areas that are in conflict," Crean said. "And so all of these are variety of inputs, and so many different levels, that all that each of these can have an impact."
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