Petrol and diesel prices will surge past £1.70 a litre due to Russia's attack on Ukraine, says the chairman of the Foreign Affairs Committee.
That's not all; there will be huge spikes in the prices we pay for goods like bread, pasta and beer.
Gas and electricity costs will continue to soar.
Chair of the Foreign Affairs Committee Tom Tugendhat said the cost-of-living crisis will become “driven by war”, with gas and food prices in danger of rising much higher than expected.
Read more: Retired Army General warns Britain could soon be at WAR with Russia
The Conservative MP told the BBC’s Today programme: “The Russian people are still flying using planes with Rolls Royce and General Electric engines.
“The money still needs to be transferred and the cost of transferring that money still has an effect on the Russian Exchequer.
“The decisions made around Europe are absolutely going to shape the way Vladimir Putin sees this because the reality is that if we leave this to stand, if we let this pass, you can forget about petrol at £1.70 a litre, which is where it’s heading now. It will be significantly higher.”
He added: “10% of the world’s wheat is grown in Ukraine and the idea that this year is going to be a good crop, I’m afraid, is for the birds.
“This is absolutely one of those moments where we’re going to see the cost-of-living crisis driven by war.”
Wheat from Ukraine and Russia is used in global production of bread, beer, pasta and many other staples.
Experts from KSI finance say that while the UK only relies on Russia for around 3 per cent of its gas supply, it's the global market that determines the wholesale gas price.
So any shortage in supply from Russia to the rest of Europe will still have a knock-on effect on prices here in the UK.
Average electric and gas bills are already expected to hit £2,000 a year when the Government's price cap is raised in April but the events in Ukraine could see this rise even further.
Similarly, petrol prices have been rising for some time, but have now hit an all-time high, reports WalesOnline.
With Russia's position as the second largest exporter of oil after Saudi Arabia, fears are increasing that their control over the world's oil supply will have a significant impact on petrol prices here at home.
On Thursday morning petrol and diesel prices reached new record highs.
Figures from data firm Experian Catalist show the average cost of a litre of petrol at UK forecourts on Wednesday was 149.43p, while diesel cost 152.83p.
Prices are expected to rise further due to the Ukraine crisis.
