Impacts of the Ukraine Conflict on Energy and Food Shortages & Price Increase in UK and EU

Abstract

The presence of Russia-Ukraine war impacts world’s energy and food markets and influenced the world’s economy directly. UK & European Union suffered a lot due to this war’s impacts. UK and EU’s energy and food market fluctuated, which affected UK and EU’s inflation rate skyrocketed and a significant increase on the cost of living. The reasons caused the high inflation rate, and the increasing cost of living can be seen as a basic supply and demand issue. The core inflation products are the key that determines the rate of inflation as well as the cost of living. While there are less supplies of energy and food to the market and demand remains the same, the price of them increases, which caused inflation rate and daily essential expenses to rise. Through research and deductive reasoning, the impacts that Russia-Ukraine war guided UK and EU’s economy to worsen, and the cost of living (which represents people’s daily expenses) to increase rapidly.