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How is the Ukraine war affecting the cost of living crisis?

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How is the Ukraine war affecting the cost of living crisis?

The warfare in Ukraine is fuelling a value of dwelling disaster. On Tuesday, Eurostat stated 12-month inflation within the Eurozone stood at 8.1 per cent – the best determine ever recorded by the European statistics workplace. 

That is squeezing households throughout Europe, with 83 per cent of Spanish households, 80 per cent within the UK, 76 in Italy, 66 in France, 65 in Denmark and 62 in Sweden all reporting rising day-to-day prices in a YouGov Ballot. 

It is not simply Europe; removed from it. Populations within the Center East and Africa are beneath immense stress because the fallout from Russia’s invasion of Ukraine spills throughout the globe. 

In April, the pinnacle of the IMF warned the warfare in Ukraine was creating the danger of “shortages” and “social instability” in these areas by contributing to increased costs. However how is the Ukraine warfare contributing to the present disaster? 

1. Meals

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A key purpose why households are feeling the pinch is that international meals costs have risen to their highest ranges because the Russian invasion, because the UN has acknowledged.  

Earlier than the warfare, Ukraine was the fifth largest wheat producer and largest sunflower oil producer on the earth.  

Most of this was exported from Ukraine to different international locations by ship. Nevertheless, Ukraine’s main ports on the Black Sea, significantly the southern metropolis of Odessa, are at the moment dealing with a Russian blockade. 

This has meant that much less wheat can depart the nation, which in flip is inflicting costs to rise as provides develop extra scarce. 

“Wheat is primary,” says Dr Tyler Kustra, an assistant professor in politics and worldwide relations on the College of Nottingham. “It is likely one of the most primordial commodities you may have on the market. People couldn’t survive with out grain.”

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World wheat costs soared by 19.7 per cent throughout March, based on the Meals and Agriculture Group’s month-to-month meals worth index, hitting a report excessive together with costs of barley and sorghum.

Africa and the Center East are significantly susceptible, Dr Kustra stated. “Egypt and Iraq import virtually all their wheat from Ukraine, which is inflicting extreme concern. I count on extra instability within the area due to this.

“As tough as it’s for folks within the UK, we will largely afford one other few pence right here and there. Somebody in Egypt who’s barely hanging on goes to be in hassle.”

The European Exterior Motion Service has claimed Russian’s invasion is aggravating worth rises by disrupting Ukraine’s manufacturing capability. 

In a tweet revealed on Monday, the EEAS alleged Russian forces have been “deliberating focusing on and destroying agricultural equipment, meals shares, manufacturing and processing, and transport capacities in Ukraine.” 

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One other main knock-on impact of the warfare in Ukraine is on animal feed, says Dr Hilary Ingham, a senior lecturer in economics at Lancaster College. 

Worth rises, she stated, “are going to feed although into the price of different foodstuffs, with some suggesting that rooster will develop into costlier than beef.” 

2. Oil

The second main space the place the battle in Ukraine is propelling the price of dwelling disaster is vitality. 

Russia is a significant participant in international vitality markets, one of many world’s prime three producers of crude and residential to roughly 1 / 4 of the planet’s identified pure fuel reserves. 

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The EU, UK and US have moved to cease importing Russian vitality in a bid to hamstring Russia’s means to finance its warfare effort, with the EU endorsing a partial ban on Russian oil on Tuesday. 

These political tensions, alongside the commerce and manufacturing disruptions attributable to the Russian invasion, have brought about vitality costs to leap. 

In April, the World Financial institution forecast that common vitality costs would soar by 50 per cent this 12 months: the largest improve because the Nineteen Seventies. 

The primary difficulty with such hikes, Dr Kustra says, is that demand for oil is comparatively mounted. “If the value of oil rises, it does not imply you’ll be able to drive half as a lot. You continue to want to select the youngsters up, drive to work and go to the outlets. The issue will not be with issues like a Position. Inflation goes up on stuff you need to purchase.”

 Like animal feed, oil worth rises additionally feed into the broader economic system. “We use oil for just about every thing,” says Dr Kustra. “Any good you buy must be transported, which signifies that oil worth will increase trigger costs to rise throughout the board.

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“What we’re going by means of is a Nineteen Seventies-style shock the place the flexibility to supply issues cheaply has gone away and the economic system is strained.”

Oil costs soared after the Russian invasion of Ukraine, reaching €118 or $116 per barrel on March 8, 2022. It’s hoped that costs will stabilise quickly.

3. COVID-19

The opening up of economies after the coronavirus pandemic can be serving to engender the price of dwelling disaster. With the easing  of restrictions, demand has skyrocketed, inserting stress on international provide chains.  

Following the pandemic oil wells have been shut off internationally as demand dropped off a cliff. Restarting oil manufacturing has come at a big price and there stay provide bottlenecks, made worse by sanctions on some key gamers together with Russia. 

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Nonetheless, spiralling meals and vitality prices, alongside the persevering with influence of COVID, aren’t the one causes behind the on-going spike in dwelling prices.  

Inflationary stress is all over the place,” stated Dr Ingham. “Provide shortages as a result of ongoing lockdowns in China, wage inflation – actually within the UK – in sectors equivalent to hospitality and highway haulage, and the warfare… Issues are actually in a little bit of a turmoil on the minute.”

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Amazon’s Cross Adaptation Gets Release Date at Prime Video — Watch Trailer

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‘Alex Cross’ TV Show: Get Season 1 Release Date, Watch Trailer



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Reformist candidate Masoud Pezeshkian wins Iran's presidential runoff election

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Reformist candidate Masoud Pezeshkian wins Iran's presidential runoff election

Reformist candidate Masoud Pezeshkian won Iran’s runoff presidential election Saturday, besting hardliner Saeed Jalili by promising to reach out to the West and ease enforcement on the country’s mandatory headscarf law after years of sanctions and protests squeezing the Islamic Republic.

Pezeshkian promised no radical changes to Iran’s Shiite theocracy in his campaign and has long held Supreme Leader Ayatollah Ali Khamenei as the final arbiter of all matters of state in the country. But even Pezeshkian’s modest aims will be challenged by an Iranian government still largely held by hardliners, the ongoing Israel-Hamas war in the Gaza Strip, and Western fears over Tehran enriching uranium to near-weapons-grade levels with enough of a stockpile to produce several nuclear weapons if it chose.

IRAN’S SUPREME LEADER THANKS US COLLEGE STUDENTS FOR ‘STANDING ON THE RIGHT SIDE OF HISTORY’

A vote count offered by authorities put Pezeshkian as the winner with 16.3 million votes to Jalili’s 13.5 million in Friday’s election. Overall, Iran’s Interior Ministry said 30 million people voted in an election held without internationally recognized monitors, representing a turnout of 49.6% — higher than the historic low of the June 28 first round vote but lower than other presidential races.

Reformist candidate for Iran’s presidential election Masoud Pezeshkian, center, reacts after casting his vote as he is accompanied by former Foreign Minister Mohammad Javad Zarif, left, at a polling station in Shahr-e-Qods near Tehran, Iran, Friday. (AP Photo/Vahid Salemi)

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Supporters of Pezeshkian, a heart surgeon and longtime lawmaker, entered the streets of Tehran and other cities before dawn to celebrate as his lead grew over Jalili, a hard-line former nuclear negotiator. Pezeshkian later traveled to the mausoleum of the late Grand Ayatollah Ruhollah Khomeini, the leader of the 1979 Islamic Revolution, and addressed journalists in a chaotic event.

“In this election, I didn’t give you false promises. I did not lie,” Pezeshkian said. “It’s been many years after the revolution that we come to the podium, we make promises and we fail to fulfill them. This is the biggest problem we have.”

Pezeshkian’s win still sees Iran at a delicate moment, with tensions high in the Mideast and a looming election in the United States that could put any chance of a detente between Tehran and Washington at risk. Pezeshkian’s victory also wasn’t a rout of Jalili, meaning he’ll have to carefully navigate Iran’s internal politics as the doctor has never held a sensitive, high-level security post.

Government officials up to Khameni, the supreme leader, predicted higher turnout as voting got underway, with state television airing images of modest lines at some polling centers. However, online videos purported to show some polls empty while a survey of several dozen sites in Tehran saw light traffic and a heavy security presence on the streets.

Authorities counted 607,575 voided votes — which often are a sign of protest by those who feel obligated to cast a ballot but reject both candidates.

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Khamenei praised the turnout Saturday despite what he alleged was a boycott campaign “orchestrated by the enemies of the Iranian nation to induce despair and a feeling of hopelessness.”

Voters in line

Iranian people stand in a queue as they wait to vote at a polling station in Tehran during a snap presidential election to choose a successor to Ebrahim Raisi following his death in a helicopter crash. (Majid Asgaripour/WANA (West Asia News Agency) via Reuters)

“I would like to recommend Dr. Pezeshkian, the elected president, put his trust in God, the Compassionate, and set his vision on high, bright horizons,” Khamenei added.

Voters expressed a guarded optimism.

“I don’t expect anything from him — I am happy that the vote put the brake on hard-liners,” said bank employee Fatemeh Babaei, who voted for Pezeshkian. “I hope Pezeshkian can return administration to a way in which all people can feel there is a tomorrow.”

Taher Khalili, a Kurdish-origin Iranian who runs a small tailor shop in Tehran, offered another reason to be hopeful while handing out candy to passersby.

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“In the end, someone from my hometown and the west of Iran came to power,” Khalili said. “I hope he will make economy better for small businesses.”

Pezeshkian, who speaks Azeri, Farsi and Kurdish, campaigned on outreach to Iran’s many ethnicities. He represents the first president from western Iran in decades — something people hope will aid the county as those in the western part are considered more tolerant because of the ethnic and religious diversity in their area.

The election came amid heightened regional tensions. In April, Iran launched its first-ever direct attack on Israel over the war in Gaza, while militia groups armed by Tehran — such as the Lebanese Hezbollah and Yemen’s Houthi rebels — are engaged in the fighting and have escalated their attacks.

While Khamenei remains the final decision-maker on matters of state, Pezeshkian could bend the country’s foreign policy toward either confrontation or collaboration with the West.

Crown Prince Mohammed bin Salman of Saudi Arabia, which has reached a detente with Iran, sent his congratulations to Pezeshkian that stressed his “keenness to develop and deepen the relations that bring our two countries and peoples together.” Russian President Vladimir Putin, who has relied on Iranian-made drones in his war on Ukraine, similarly congratulated Pezeshkian.

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Responding to questions from The Associated Press, the State Department called the Iranian election “not free or fair” and noted that “a significant number of Iranians chose not to participate at all.”

“We have no expectation these elections will lead to fundamental change in Iran’s direction or more respect for the human rights of its citizens,” the State Department added. “As the candidates themselves have said, Iranian policy is set by the supreme leader.”

However, it said it would pursue diplomacy “when it advances American interests.”

Candidates repeatedly touched on what would happen if former President Donald Trump, who unilaterally withdrew America from the Iran nuclear deal in 2018, won the November election. Iran has held indirect talks with President Joe Biden’s administration, though there’s been no clear movement back toward constraining Tehran’s nuclear program for the lifting of economic sanctions.

Pezeshkian’s win did see Iran’s rial strengthen Saturday against the U.S. dollar, trading 603,000 to $1, down from 615,000 on Thursday. The rial traded 32,000 to $1 at the time the 2015 nuclear deal was reached.

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Though identifying with reformists and relative moderates within Iran’s theocracy during the campaign, Pezeshkian at the same time honored Iran’s paramilitary Revolutionary Guard, on one occasion wearing its uniform to parliament. He repeatedly criticized the United States and praised the Guard for shooting down an American drone in 2019, saying it “delivered a strong punch in the mouth of the Americans and proved to them that our country will not surrender.”

The late President Ebrahim Raisi, whose death in a May helicopter crash sparked the early election, was seen as a protégé of Khamenei and a potential successor as supreme leader.

Still, many knew him for his involvement in the mass executions that Iran conducted in 1988, and for his role in the bloody crackdowns on dissent that followed protests over the 2022 death of Mahsa Amini, a young woman detained by police over allegedly improperly wearing the mandatory headscarf, or hijab.

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Niger, Mali and Burkina Faso military leaders sign new pact, rebuff ECOWAS

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Niger, Mali and Burkina Faso military leaders sign new pact, rebuff ECOWAS

The military leaders of Burkina Faso, Mali and Niger have hailed a newly signed treaty as a step “towards greater integration” between the three countries, in the latest showing of their shift away from traditional regional and Western allies.

During a summit in the Nigerien capital of Niamey on Saturday, the three leaders signed a confederation treaty that aims to strengthen a mutual defence pact announced last year, the Alliance of Sahel States (AES).

The signing capped the first joint summit of the leaders – Niger’s General Abdourahmane Tchiani, Burkina Faso’s Captain Ibrahim Traore, and Mali’s Colonel Assimi Goita – since they came to power in successive coups in their bordering West African nations.

It also came just months after the three countries withdrew from the Economic Community of West African States (ECOWAS) regional bloc in January.

Speaking at the summit on Saturday, Tchiani called the 50-year-old ECOWAS “a threat to our states”.

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The West African economic bloc had suspended the three countries after their respective military takeovers, which occurred in July 2023 in Niger, September 2022 in Burkina Faso and August 2021 in Mali.

ECOWAS also imposed sanctions on Niger and Mali, but the bloc’s leaders have held out hope for the trio’s eventual return.

“We are going to create an AES of the peoples, instead of an ECOWAS whose directives and instructions are dictated to it by powers that are foreign to Africa,” Tchiani said.

Burkina Faso’s Traore also accused foreign powers of seeking to exploit the countries. The three nations have regularly accused former colonial ruler France of meddling in ECOWAS.

“Westerners consider that we belong to them and our wealth also belongs to them. They think that they are the ones who must continue to tell us what is good for our states,” he said.

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“This era is gone forever. Our resources will remain for us and our population’s.”

For his part, Mali’s Goita said the strengthened relationship means an “attack on one of us will be an attack on all the other members”.

Shifting influence

Reporting from Abuja on Saturday, Al Jazeera’s Ahmed Idris noted that the three military leaders met just a day before ECOWAS was set to have a meeting in the capital of Nigeria.

Efforts to mediate the countries’ return to the bloc were expected to be discussed, Idris said.

“Many people believe that the meeting in Niger was to counter whatever is coming [from] ECOWAS and to also outline their position: That they are not returning to the Economic Community of the West African States,” he explained.

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Idris added the newly elected president of Senegal, Bassirou Diomaye Faye, recently visited the three countries in an informal capacity in an effort to mend the ties.

“However, it’s not clear whether or not he’s got a positive response,” he said.

Adama Gaye, a political commentator and former ECOWAS communications director, said the creation of the three-member Alliance of Sahel States has “weakened” the economic bloc.

Still, Gaye told Al Jazeera that “despite its real-name recognition, ECOWAS has not performed well when it comes to achieving regional integration, promoting intra-African trade in West Africa and also in ensuring security” in the region.

“So this justifies the feeling of many in West Africa – [the] ordinary citizenry and even intellectuals – [who are] asking questions about the standing of ECOWAS, whether it should be revised, reinvented,” he said, urging the bloc to engage in diplomacy to try to bridge the rift.

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Violence and instability

The Niamey summit also came a day before the United States is set to complete its withdrawal from a key base in Niger, underscoring how the new military leaders have redrawn security relations that had defined the region in recent years.

Armed groups linked to al-Qaeda and ISIL (ISIS) have jockeyed for control of territory in all three countries, unleashing waves of violence and spurring concern in Western capitals.

But following the recent coups, the countries’ ties to Western governments have frayed.

French troops completed their withdrawal from Mali in 2022, and they left Niger and Burkina Faso last year.

Meanwhile, US Air Force Major General Kenneth Ekman said earlier this week that about 1,000 military personnel would complete their withdrawal from Niger’s Air Base 101 by Sunday.

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The US is also in the process of leaving a separate, $100m drone base near Agadez in central Niger, which officials have described as essential to gathering intelligence about armed groups in the region.

While pushing out former Western allies, the military leaders in Burkina Faso, Niger and Mali have increasingly pursued security and economic ties with Russia.

However, it remains unclear if the new approach has helped to stem the violence that has plagued the countries, which are home to about 72 million people.

In 2023, Burkina Faso saw a massive escalation in violence, with more than 8,000 people killed, according to the Armed Conflict Location and Event Data Project (ACLED) tracker.

In Niger, slight gains against armed groups largely backslid following the coup, according to ACLED.

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Meanwhile, an offensive by Malian forces and Wagner mercenaries saw “elements” of the Russian-government-linked group “involved in the indiscriminate killing of hundreds of civilians, destruction of infrastructure, and looting of property, as well as triggering mass displacement”, ACLED said.

About three million people have been displaced by fighting across the countries.

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