How Putin's war is affecting the world economy

German consumers are feeling the pinch of the rising cost of living. The consequences of the war in Ukraine and the sanctions against Russia have not gone unnoticed. In March, Germany's inflation rate hit its highest level since 1981. The German government is keen to press ahead quickly with an embargo on Russian coal, but it is still wrangling over whether to ban imports of Russian gas and oil.

Cars wait in line at gas stations in Nairobi. Here, too, people are noticing the effects of the war in Ukraine. Fuel is expensive, and in short supply - not to mention the food crisis. At the UN Security Council, Kenya's UN ambassador Martin Kimani expressed concern, comparing the situation in eastern Ukraine to the changes that took place in Africa after the end of the colonial era.

Russia is the world's largest producer of wheat. Because of the ban on Russian exports, the price of bread is now rising in many places – including here, in Turkey. International sanctions are disrupting supply chains. Ukraine, too, is one of the five biggest exporters of wheat in the world, but the war with Russia means it can't ship supplies from its ports on the Black Sea.

A worker piles up sacks of flour at the Jamila market, a popular wholesale market in Baghdad. Wheat prices have skyrocketed in Iraq since Russia invaded Ukraine, as the two countries account for at least 30% of the world's wheat trade. Iraq has remained neutral so far, but pro-Putin posters have now been banned in the country.

Demonstrators have clashed with police in the Peruvian capital Lima. They are protesting against the rise in food prices, among other things. The crisis has been exacerbated by the war in Ukraine. Peruvian President Pedro Castillo temporarily imposed a curfew and a state of emergency, but when these were lifted, the protests resumed.

In Sri Lanka, too, people have taken to the streets to express their anger. A few days ago, some even tried to storm the private residence of President Gotabaya Rajapaksa. Mounting protests against the rising cost of living, fuel shortages, and power cuts prompted the president to declare a national state of emergency, and to ask India and China for help procuring the resources his country needs.

There have been protests against rising food and energy prices in Scotland, too. All over the UK, trade unions have been organizing demonstrations to protest the rising cost of living. Brexit had already resulted in price increases in many areas of life, and the war in Ukraine will only make things worse.

The British have reason to worry about their beloved national dish. Around 380 million portions of fish and chips are eaten in the UK every year. But the tough sanctions now mean that prices for white fish from Russia, cooking oil, and energy are all rising. In February 2022, the UK inflation rate was 6.2% year-on-year.

A trader in Ibafo, Nigeria, packages flour for resale. Nigeria has long wanted to reduce its reliance on imported food, and to make its economy more resilient in other areas as well. Could the war in Ukraine provide opportunities for Nigeria? Aliko Dangot, Nigeria's richest man, recently opened the country's largest fertilizer plant, and is hoping he will have plenty of buyers.