Food, Gas Prices Pinch Families as Inflation Surges Globally
November 29, 2021
BUDAPEST, Hungary (AP) — From appliance stores in the United States to food markets in Hungary and gas stations in Poland, rising consumer prices fueled by high energy costs and supply chain disruptions are putting a pinch on households and businesses worldwide.
Rising inflation is leading to price increases for food, gas and other products and pushing many people to choose between digging deeper into their pockets or tightening their belts. In developing economies, it’s especially dire.
“We’ve noticed that we’re consuming less,” Gabor Pardi, a shopper at an open-air food market in Hungary’s capital, Budapest, said after buying a sack of fresh vegetables recently. “We try to shop for the cheapest and most economical things, even if they don’t look as good.”
Nearly two years into the COVID-19 pandemic, the economic impact of the crisis is still being felt even after countries raced out of debilitating lockdowns and consumer demand rebounded. Now, another surge of infections and a new coronavirus variant, omicron, are leading countries to tighten their borders and impose other restrictions, threatening the global economic recovery.
Omicron has raised new fears that factories, ports and freight yards could be forced to close temporarily, putting more strain on global commerce and sending prices even higher.
“A new round of infections could further aggravate supply chains, putting even more upward pressure on inflation,” said Rubeela Farooqi, chief U.S. economist at High Frequency Economics.
Story By JUSTIN SPIKE, PAUL WISEMAN and VANESSA GERA for the Associated Press.
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