When the wholesale prices of essential goods like food or oil suddenly rise, it can cause deep shifts in the economy that upend trade balances and hike inflation rates. This is known as a commodity price boom.
The outbreak of war in Ukraine in February 2022 spurred European and US sanctions on Russian oil companies which restricted global oil supply. The ensuing shock hiked energy prices in the international market and meant that the price of Brent crude, a global benchmark for oil prices, reached US$122 (£95) a barrel on March 21 that year, its highest level since 2015.
