(Bloomberg) — Treasury Secretary Janet Yellen repeated her view that elevated U.S. inflation won’t persist beyond next year and said the Federal Reserve will act if needed to prevent a rerun of 1970s-style price rises.
- Economists expect the consumer price index rose 0.6% in October and 5.9% on a year-over-year basis, the most since 1990.
- The CPI is hotter than economists initially expected it would be, and they now see it staying elevated into next year.
- “What we’re seeing is there’s this second wave of inflation that appears more broad based, and it’s also backed up with a sharp increase in wages,” said one economist.
OAKLAND, Calif. (AP) — U.S. food banks already dealing with increased demand from families sidelined by the pandemic now face a new challenge — surging food prices and supply chain issues walloping the nation.
The higher costs and limited availability mean some families may get smaller servings or substitutions for staples such as peanut butter, which costs nearly double what it did a year ago. As holidays approach, some food banks worry they won’t have enough stuffing and cranberry sauce for Thanksgiving and Christmas.
“What happens when food prices go up is food insecurity for those who are experiencing it just gets worse,” said Katie Fitzgerald, chief operating officer of Feeding America, a nonprofit organization that coordinates the efforts of more than 200 food banks across the country.
EVERYTHING IS GOING SWIMMINGLY: Thanksgiving Dinner Staples Are Low in Stock Thanks to Supply-Chain Issues.
Supplies of food and household items are 4% to 11% lower than normal as of Oct. 31, according to data from market-research firm IRI. That figure isn’t far from the bare shelves of March 2020, when supplies were down 13%.
For grocery shoppers this holiday season, it means that someone with 20 items on their list would be out of luck on two of them.
Although U.S. supermarket operators started purchasing holiday items early, aiming to avoid shortages, many holiday essentials are already in short supply.