(WEHT) – It’s no secret that prices are going up. Everywhere you turn, there’s more inflation to be seen. Now after Russia has invaded Ukraine, what could we see here in the US?
“There’s a lot of uncertainty,” said IUPUI professor Scott Pegg. “This crisis could be over in a week or it could be over in three decades.”
Supply chain shortages have been a continuing issue. Pegg says there aren’t a lot of “made-in-Russia” goods and services in the US, so it may not be a direct hit for our economy.
“Some European countries – say German or British companies – they might have more connections either to Russia or Ukraine,” added Pegg. “And if it affects them adversely it might also spill over to us.”
“Definitely worried about shortages in materials and stuff like that,” said Seth Wilhite of Asheville, NC. “Don’t want people to get too worried and go buy up all the bread or anything.”
Russia is one of the world’s largest oil and gas suppliers and many of their pipes go through Ukraine, which could be damaged in the war. Oil prices have surged to $100 per barrel. Some worry that the gas prices could spike and reach over $4 per gallon.
“We’ve been seeing a lot of gas prices kind of fluctuating,” said Emma Siplon of Asheville, NC.
“The Europeans are going to see this most directly, their supplies are most directly threatened,” said Pegg. “But oil and gas are traded globally. Even though we’re not directly in the front line on this it’s not unreasonable to expect higher prices and more volatile prices.”
The crisis also brings uncertainty to the financial world. Pegg says he would not be surprised to see the markets to go down, but that he believes they will revert back to a normal pattern. He says he also does not see a reason to pull out investments at this time.
“If you pull money out of your retirement fund that is the worst, least effective thing you can do,” added Pegg. “One, you pay taxes on it and two, you also pay penalty fees on it. So that is generally the most awful thing you can do and you should only do if you’re in some sort of life emergency.”