Why People Are Worried About Inflation
We begin this program today is that one or even two data points do not a trend make the topic at hand is of course inflation. The latest reading of which we got this morning consumer prices were up five percent in may over a year ago. The biggest twelve month increase since two thousand eight. That's the headline number of course up a little more than a half percent april-to-may this year that is month to month. The reason that caveat is important is that we just don't know whether what we're seeing in inflation now and what we saw to be clear last month is what we're going to be seeing in six months from now or a year. That's the whole. Is it transitory debate. We've been telling you about about all we can do right now is read the tea leaves. And that is the assignment. Marketplace's justin ho today focus food food. Prices jumped about half a percent in may mostly because of meat poultry. Fish eggs people want protein. So demand side is there. Glenn tanzer at kansas state. University has been researching consumer's expectations on what they'll pay for rabbi ground beef pork chops and bacon. And he's found that consumers think prices will rise more so they're loading up and that in itself is going to lead this higher prices. What's uncertain is whether prices are only rising because of short term issues like supply bottlenecks and the fact that things are reopening or whether prices will keep rising communists. Sarah how wells fargo says. In general food commodity prices tend to creep up gradually so that suggests that there is some staying power. This is also happening while the food industry is paying higher wages to attract labor as a result. How says groceries and restaurants work on very thin margins argon have to raise prices further.