'A Perfect Storm': Russian Attack On Ukraine Threatens To Drive Up Prices Around The World
CAMBRIDGE (CBS) - "You know we've tried to, in every way, keep prices down," said Rene Becker, owner of Hi-Rise Bread Company in Cambridge. He said some of his ingredients have doubled in price since the pandemic began. "We had to raise our prices," he said.
Now, there is turmoil in a part of the world that produces some of the things used to make the goods we see on store shelves. Russia and Ukraine produce flour, grains, and the fuel needed to transport products.
"Russia's a big exporter of oil and gas, not just to Europe, but other places," said Boston University economics professor Tarek Hassan. "Nickel, wheat, raw materials of all kinds," he added.
He said it's not cause for alarm just yet, but it comes as consumers were already taking a hit. "We're sort of experiencing a perfect storm coming out the pandemic, so it's going to add to pressures," he said.
"I noticed the last time I went to the store was about $20 more than the couple times before that," said Ray Chiasson from Boston. "You know, just another thing to inflate prices is kind of a hardship," said Dave Barrett from Nashua, New Hampshire.
Back at Hi-Rise Bakery, Becker's eye is on his main ingredient, which is flour. He buys it from the United States, but analysts say a squeeze on the global supply could trickle down here.
"If you're at war, you're not very concerned about farming," said Becker. "Farming comes second to everything else. So that's going to create a vacuum I would think. Will the U.S. try to fulfill that demand to fill that vacuum? Possibly, which would then force our prices up here."
