Here's why fallout from Iran war will push grocery prices even higher
While U.S. consumers are already navigating the household budget impacts of the Iran war at the gas pumps, they could also be facing a year or more of steadily increasing grocery costs if the Middle East conflict drags on.
That was among the findings of a Purdue University analysis that predicts the broad energy shock precipitated by a sustained war could add three to six percentage points to grocery inflation over the coming 12-18 months.
Last week’s Personal Consumption Expenditure report from the Commerce Department found overall U.S. inflation shot up 0.7% on a monthly basis in March, hitting an annual rate of 3.5%. Core PCE inflation, which strips out volatile food and energy prices, rose 0.3% from February to March and came in at an annual rate of 3.2% in March.
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“The gas pump is only the opening act,” Mark Malek, Siebert Financial CIO told Business Insider. “The real household inflation hit comes later, hidden inside everyday products.”
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Deseret News via Archive
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