World faces largest cost-of-living crisis in a generation: UN report

The world is facing a cost-of-living crisis unseen in at least a generation, partly due to the Ukraine conflict, said a UN report on Wednesday.

“The largest cost-of-living crisis of the 21st century has come when people and countries have a limited capacity to cope,” said the second report of the Global Crisis Response Group on Food, Energy and Finance over the Ukraine conflict.

The Ukraine conflict has trapped the people of the world between a rock and a hard place. The rock is the severe price shocks in food, energy and fertiliser markets, given the centrality of both Russia and Ukraine in these markets. The hard place is the extremely fragile context in which this crisis arrived: a world facing the cascading crises of Covid-19 and climate change, it said, according to Xinhua.

“A shock of this magnitude would have been a significant challenge no matter the timing. Now, it is of historic, century-defining proportions,” the report said.

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