Forcast..

In the span of just a few days, the global economic outlook has darkened while troops battled in Ukraine and unexpectedly potent financial sanctions rocked Russia’s economy and threatened to further fuel worldwide inflation.

The sanctions were designed to avoid disrupting essential energy exports, which Europe relies on to heat homes. That did not erase, a surge in energy prices caused by war and anxieties about disruptions in the flow of oil and gas.

Worries about shortages also pushed up the price of some grains and metals, which would inflict higher costs on consumers and businesses. Russia and Ukraine are also large exporters of wheat and corn, as well as essential metals, like palladium, aluminum and nickel, that are used in everything from mobile phones to automobiles.

Inflation was already a concern, running in the United States at the highest it has been since the 1980s. Now questions about how much more inflation might rise and how the Federal Reserve and other central banks respond.   

Patricia Cohen, based in London, covers the world economy.3/232022.