The conflict between Ukraine and Russia is likely to increase the cost of living in Australia.

The price of oil surged past $100 a barrel for the first time since 2014 this week after a full-scale military assault was ordered on Ukraine.

Russia is the world’s second-largest exporter of crude oil and with much of the world bringing in harsh sanctions, it’s caused a spike in prices.

Australian Financial Review Economics Editor John Kehoe told Neil Breen it’s not just at the bowser we’ll notice price rises.

“Petrol, fuel, diesel, it’s all a key ingredient to the whole economy,” he said.

“Things need to be transported from the farm to the supermarket shelf, airline tickets could go higher, … so that could really flow into inflation across the whole economy.”

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