How Food and Energy Crises Contribute to Economic Downturn
News Analysis
If more households are spending on food and energy, will they modify their consumption patterns?
With consumer demand gradually weakening and business activity slowing down, the consequences of surging food and energy inflation might be weighing on the broader economy.
But what are the data showing and how are higher food and energy prices fueling the recession?
Paying More for Food
In July, food inflation hit 10.9 percent, the highest level since May 1979. Across the board, every food and beverage item listed on the Bureau of Labor Statistics’ (BLS) consumer price index has surged on a year-over-year basis, from bread to meat to coffee….