Russian Attack On Ukraine Set To Bring Trickle-Down Effects In Chicago, From Inflation To Gas Prices And Cyber-Meddling
CHICAGO (CBS) -- The Russian attack on Ukraine could have trickle-down effects that could be costly and quick in Chicago.
As CBS 2's Chris Tye reported Thursday, it has been a while since we've seen wild swings in prices at places like the gas station. Usually, it is Middle Eastern unrest that triggers a jump.
This time, of course, it's Russia - and experts say it's more complicated.
So how much more will you be paying to fill up?
"I wouldn't be surprised to see all this drive up the price of gasoline by 50 cents a gallon or more," said Maurice Obstfeld, senior fellow at the Peterson Institute for International Economics.
Russia produces 10 percent of the world's oil. Many buyers of Russian oil have stopped due to sanctions.
Depending on how other oil producing countries fill that void, there may not be a run on demand - keeping prices from spiking.
The second big issue is the stock market. One certainty on Wall Street is that investors hate uncertainty.
Wild card maneuvers from Russian President Vladimir Putin have 401(k)s less steady than last week and last month.
The third issue is inflation. We've felt it from Christmas shopping to grocery shopping.
The price of things expected to jump as the unrest worsens – particularly critical metals produced in Russia. Some such metals, such as palladium, platinum, and nickel, are used to manufacture computer chips – and a hike in prices is could in turn further surge the price of cars and electronics.
One help in this category is that of all countries importing to Illinois: Ukraine ranks 35th with $235 million worth of imports, while Russia ranks 40th with $149 million worth. Of all countries Illinois experts export to, Russia ranks 21st with $469 million, while Ukraine ranks 57th with $52 million.
The fourth area of concern is the internet of things. Russia doesn't just make metal - they are savvy at meddling.
"And frankly, the Russians are best in the world at this kind of mischief," Obstfeld said.
Experts say systems from aviation to retail are at heightened risk as Putin, a former KGB agent, uses tools in a 21st-century toolbox to unlock new pressure points in the west.
"It would disrupt transportation networks - including air travel - and could have a pretty dire effect on the global supply chain," Obstfeld said.
The stock market actually ended the day up. However, the Dow Jones Industrial Average is off more than 1,000 points from a week ago as investors sort out the reality of what is happening and where things are going.
