WSJ: It Just Had an Energy Crisis, Now Europe Faces a Food Shock
Food prices continue to rise at a rapid pace, surprising central banks and pressuring debt-laden governments
LONDON—Fresh out of an energy crisis, Europeans are facing a food-price explosion that is changing diets and forcing consumers across the region to tighten their belts—literally.
Europe is toast. Loose fiscal policy and a tighter labour market are adding fuel to the inflationary fire in the UK. The core inflation reaccelerated to 6.8% YoY (6.3% Smoothed 3-Month Moving Average), indicating that inflation is becoming entrenched
Source: Sagar Singh
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EVERYTHING IS GOING SWIMMINGLY (ITALY EDITION): Italian ‘pasta strike’ proposed amid soaring prices.
Pasta costs rose by 17.5% in March and 16.5% in April. That’s more than double Italy’s roughly 8% inflation rate.
The reason is simple: Much of the pasta now making its way to store shelves (and imported here to the U.S.) was manufactured during the pandemic, when commodity costs were higher.
As a result, retail costs now reflect the higher production expenses.
Even so, that’s not sitting well with Italians.
“High prices are maintained in order to have greater profits,” an Italian consumer group called Assoutent told CNBC.
The group is seeking a “pasta strike” by consumers lasting at least 15 days to reduce demand and force retailers to lower costs.
It’s hard to imagine Italians giving up pasta at any price.
h/t Simian_Stacker