The situation between Russia and Ukraine affects American consumers: the retail industry will suffer

How will the conflict between Russia and Ukraine affect American consumers?

According to foreign media reports, U.S. stocks fell on the morning of the 24th after the conflict between Russia and Ukraine broke out . Consulting firm GlobalData said, "The decline in the stock market will affect people's investment and overall views on the economy, which may affect consumer behavior and have a slight negative impact on retail sales."

But the impact of the Russia-Ukraine conflict on the United States is not limited to these. Russia is one of the three major oil producers, with a market share of about 13%. Some industry analysts believe that the conflict may slow down Russia's oil supply and lead to higher oil prices . On the morning of the 24th, the US oil price exceeded $100 per barrel , which would hit American consumers .

Ukraine, often called the "breadbasket of Europe," is a major food exporter and the conflict could also lead to higher food prices, further fueling inflation.

According to the monthly report of the U.S. Bureau of Labor Statistics, the prices of basic goods in the United States have risen sharply again amid historically high inflation . In January 2022 , consumer prices rose by 7.5% compared with the same period last year . This figure is higher than 7% in December last year and is the highest inflation rate since February 1982 .

As the economic trend goes, when commodity prices such as oil and food rise, consumers are less likely to spend money on other non-needed items such as luxury clothing or accessories.

“ It’s going to impact our ability to buy other goods, ” said Brian Marks, a senior lecturer in economics and business at the University of New Haven . “ There’s less disposable income available to buy other things. ”

However, the US government said it would try its best to reduce the impact of rising oil prices: " We are using a variety of tools to protect American families and businesses from rising oil prices. We are taking active measures to reduce costs . "

At the same time, during the conflict, people are more likely to stay at home and travel less abroad, and travel products, which had just shown signs of recovery, may suffer another blow.  

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