inflation is already at the highest level in four decades. Russia's full-scale attack on Ukraine could push it even higher.That's because the conflict has already sent oil prices above $100 a barrel for the first time since 2014, with some prices jumping as high as $105 on Thursday after Russia launched a broad offensive against Ukraine late Wednesday night, hitting cities and bases with airstrikes and shelling.
Brent crude, the global benchmark, surged more than 8%, hitting $105.50 early Thursday. U.S. oil prices, meanwhile, climbed to more than $99. LIVE UPDATES: WORLD REACTS AS PUTIN ORDERS TROOPS INTO UKRAINEThe war in Europe – which has shattered nearly three decades of peace on the continent – could ultimately cause oil prices to surge as much as 20% to $120 a barrel, according to RSM chief economist Joe Brusuelas.
Should that happen, consumer prices in the U.S. would surge above 10% on an annual basis, the economist said, the highest since October 1981.
The conflict also threatens to cause massive casualties. "The potential for a broader energy shock to the global and U.S. economies should Russia invade Ukraine has added to a combustible mix of factors that is causing inflation to accelerate in the United States and abroad," Brusuelas said.