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Several commenters have provided various reasons year-over-year numbers are, to put it mildly, difficult to interpret. Another reason is that a major war in Eu
by Zigurd 4y ago
Several commenters have provided various reasons year-over-year numbers are, to put it mildly, difficult to interpret.
Another reason is that a major war in Europe started within this year, adding to the difficulty of Y0Y comparisons. The principal weapon deployed against the aggressor is economic warfare to collapse Russia's economy. That has only recently made an impact that can't be denied in Russia.
Meanwhile, the war has directly cut food exports from Ukraine and both directly and indirectly disrupted food and fossil fuel markets in many regions, mostly toward higher costs and trade substitutions that also mostly lead to higher costs.
Interest rate rises are probably needed but the causes of inflation are mostly outside central bankers' control.
- flavius29663 4y agoYou can't blame US inflation on the Russia war, this is a DNC misdirection. For the US at least, it should be a minor factor. The US were trading very little with Russia to begin with, even before the war. Russia's economy before the war was still smaller than California, New York or Texas. Waging economic warfare on a medium economy like that should not wreak the US, Europe or the World economies.
- richiebful1 4y agoAgreed with one caveat: energy. Some countries in Europe depend on Russian gas for a significant percentage of their energy. Europe is desperate for LNG and is outbidding other gas importing nations, driving up prices.
- happyopossum 4y agoYet natural gas prices here in the US slumped last month…
- dalyons 4y agoEnergy and food prices are global, regardless of who trades with who. Try to be less nakedly partisan.
- flavius29663 4y agoBut again, Russia is a small fish in the world economy, the US+EU have a combined GDP of 40 trillion dollars, you cannot say that waging economic war against a 1.7 trillion economy is causing such damage. Like you said, the Russians still sell energy and food worldwide, even if Europe and US buy less (or at all), so I don't buy this explanation. > Try to be less nakedly partisan This is a talking point from DNC, I was trying to show how flawed it is. If that makes me partisan, fine. It means we're ready to swallow any bullshit that comes from the party/government, as long as it makes us feel good.
- Zigurd 4y agoCommodities are fungible. The US makes lots of oil and food. The companies that make these things sell them to all comers at global prices.