Here’s what will get more expensive in India if Russia-Ukraine go to war

If Russia-Ukraine tensions continue to simmer, the price of natural gas, wheat and metals may rise in India too, thereby impacting the common man.

Tremors of the Russia-Ukraine crisis are likely to be felt by the aam aadmi in India as prices of essential commodities are set to rise.

While tensions between Russia and Ukraine simmer, the global economy is on tenterhooks. From natural gas to wheat, experts believe that prices of various commodities will increase in the near future.

Here’s what is likely to be impacted in the days to come:

The Ukraine-Russia crisis has pushed Brent crude oil price to $96.7 per barrel, the highest it has been since September 2014.

Russia is one of the biggest producers of crude oil. The current crisis can lead to prices shooting up to more than $100 per barrel in the days to come. An increase in crude oil price will have a spillover impact on global GDP.

Analysis by JP Morgan notes that a spike in oil prices to $150 a barrel would reduce global GDP growth to just 0.9 per cent.

Crude oil-related products have a direct share of over 9 per cent in the Wholesale Price Index (WPI) basket. An increase in Brent crude prices, hence, will increase India's WPI inflation by around 0.9 per cent.