​The economic blow Russia will suffer from the sanctions will cause sub-shocks in our personal life

The economic blow that Russia will suffer from the sanctions will cause sub-shocks, because the global economy is very integrated today. Even overseas vacations will increase as a result, due to rising prices for insurance, jet fuel, and a possible shortage of flights. We may be able to give up the neighborhood baker's cookie box after it becomes more expensive, The military - wherever we turn.

Inflation is an economic phenomenon that has been almost completely absent from the world for three decades. Captivation is worrying - it erodes the value of money and income of employees. Governments around the world are now considering what to do: they are subsidizing essential products like fuel for the poor, minimum wage rates and aid flows. Central banks are raising interest rates or considering raising interest rates. Russia's invasion of Ukraine will cause price increases in the world as well as in Israel. Undoubtedly, this is in view of the fact that Russia and Ukraine are responsible for a large amount of world wheat production.
Ukraine and Russia account for more than a quarter of world wheat trade, and a fifth of world corn trade. One-third to one-half of the wheat and fodder for cattle in Israel are imported from Ukraine and Russia. Closure of ports and railways in Ukraine has already disrupted supplies. Grain importers reported that in Israel there is enough grain stock for only one month. The shortage is expected to price meat, dairy, and egg products. Our Department of Agriculture has issued reassuring notices regarding shortages of eggs, wheat and forage - but importers are attacking alternative suppliers in the US and South America.
Contract wheat prices for delivery next month have soared 40 percent on the Chicago Board of Directors in the past year, rising 23 percent since the beginning of the year to a 13% high. This morning (Friday) they are calming down a bit, with the stock markets rising. Corn has risen by 18% since the beginning of the year - it is also an important component in fodder and human food production. According to the forecast of the Danish bank Revovbank, wheat will rise by another 30% and corn by 20%. "The sky is the limit," Scott Skovil, vice president of Price Future Group in Chicago, told Bloomberg about the expected rise in price due to the conflict in Ukraine.
Growing grain requires fertilizer - which Russia also exports in large quantities. Disruption in this area will increase the price of fertilizer and higher costs will be imposed on farmers who grow it - which in turn will lead to more food prices on our plate. This may help Israeli fertilizer manufacturers. The ICL stock chart (+ 0.4% 3474), for example, is showing a very consistent trend this year.
The disruption in the capital markets is already visible: a downturn in the stock markets began before the rocket barrages on Kiev, partly due to fears of rising interest rates in the US, but it escalated this week. , And even, so to speak - closer physically to the battle zone.
Beyond food and energy prices, Russia's isolation has an impact on metal prices, which is one of their major suppliers. Nickel, industrial aluminum and palladium - precious metal whose main use is in catalytic converters, which are components found in every car and vehicle with an internal combustion engine (gasoline or diesel). Palladium shortages could further disrupt the supply chain and make it difficult to produce new cars.
Needless to say, the rise in the price of oil and natural gas is not just the price of these products themselves or oil distillates like car fuel: every plant needs energy - and if its inputs go up, so do its products, whether they are toys or iPhones. Last winter, electricity prices rose in Europe and some power-hungry factories were forced to close because it did not pay for them to continue operating at high tariffs. Every household needs electricity. Petroleum is also a raw material in the manufacture of plastics.