From oil to wheat: what surging prices mean for companies and consumers

From oil to wheat: what surging prices mean for companies and consumers

The world was contending with a huge inflation problem long before Russia invaded Ukraine as the recovery from Covid led to a spike in demand. But the invasion is driving up prices of precious commodities such as fuel, food and key materials even further as traders brace for supply chain disruption amid the threat of further sanctions. Here are six commodities that are soaring in value as Russian supplies face being cut off from global trade. Gas Gas prices rocketed to as much as 73.8pc to 800p per therm on Monday, creating an increase of more than 200pc so far this year. Gains started well before Russian troops crossed into Ukraine amid lower supplies from Moscow and high demand in the post-Covid recovery. The war is stoking fears of Russian gas being cut off by potential Western sanctions – or by the Kremlin in retaliation. British households are bracing for the near £700 increase in the energy price cap in April , to £1,971 per year. In October, however, the cost of heating homes is likely to climb even further as another cap is introduced. JP Morgan economist Allan Monks warns energy bills could rise a further 70pc in October