Brits could see a surge in the price of fuel, energy and housing as a result of the Russian invasion of Ukraine, experts have warned.
In the early hours of Thursday morning, Russia launched a 'full-scale invasion' of Ukraine with explosions heard across major cities including the country's capital, Kyiv.
War broke out shortly after 4.35am with Ukrainian president Volodymyr Zelenskyy quickly announcing martial law across the nation, the Mirror reports.
Now, the conflict may have economic consequences that will be seen across the world, including the UK.
It could lead to supply shortages as well as affect how the Bank of England makes economic decisions.
Petrol and diesel prices
Prime Minister Boris Johnson has warned that "one of the risks of Putin's venture is that there could be a spike in oil prices".
The price increase is directly linked to Brent crude - a vital oil used across Europe.
Brent crude saw its price increase by more than $100 (£74.29) for the first time since 2014 as a result of Russia moving into Ukraine.
Russia is the world's second-largest oil producer and its main customers are other European countries.
Trading oil may become much more difficult because of the war Russia initiated and could disrupt the regular supply of oil, causing price hikes.
It comes after Brits are already paying more than ever to fill up their cars with government figures showing petrol and diesel prices hitting a record high this week.
The average price of a litre of petrol is now 147.7p and diesel 151.95p.
The previous record for petrol was 147.53p, set in November 2021.
Tom Tugendhat, chair of the Foreign Affairs Committee, told the BBC that petrol prices could rise to "significantly" more than £1.70 a litre.
Bread, beer, pasta and other staples
Wheat from Ukraine and Russia is used in the global production of bread, beer, pasta and many other staples.
Its supply could be disrupted due to the conflict between the two countries which could push up prices for goods that rely on wheat.
Mr Tugendhat said 10% of the world’s wheat is grown in Ukraine.
"The idea that this year is going to be a good crop, I’m afraid, is for the birds," he said.
“This is absolutely one of those moments where we’re going to see the cost-of-living crisis driven by war.”
Energy bills
Brits could also see their energy bills rising due to the disrupted flow of gas which will be affected by the war.
Russia provides around 35 per cent of the gas used in Europe - and British homes are extremely reliant on gas.
According to the Office for National Statistics, 86.3 per cent of British homes have gas central heating.
Gas is also a key factor for mains electricity supply.
While the UK only gets 5 per cent of its gas from Russia, the main concern is how the conflict will affect the global gas market.
Even without the conflict gas prices were set to reach record highs.
Energy regulator Ofgem will be hiking its price cap from April resulting n the average British home seeing their bills increase by £693.
Those on default energy tariffs paying by direct debit will see an increase of £693 from £1,277 to £1,971 from April 1 - a rise of around 54 per cent.
Mortgage and loan rates
The Bank of England could increase the base rate -otherwise known as interest rate- in response to the Ukrainian conflict.
Economist Andrew Wishart, of Capital Economics, told the Telegraph today: "We think a conflict would keep inflation higher for longer and potentially bring forward some rate rises.”
This would mean loan rates rise - but savings rates fall.
Consumers will feel the changes to the rate the most and that spells bad news for people with loans or mortgages.
The Bank of England uses the interest rate as a tool to control the British economy. If the base rate goes up, inflation goes down and vice-versa.
Earlier this month, the Bank raised the base rate from 0.25 per cent to 0.5 per cent which saw inflation jump to its highest level in 10 years.
