Sober Look

Deutsche Bank: Ignoring food price pressures could be a mistake

Economists and central bankers tend to be less focused on what consumers pay at the grocery store because food and energy prices have historically been more volatile – remember, it’s just “noise”. However what they can’t ignore is how shoppers view inflation – i.e. inflation expectations. And food prices have a significant impact on households’ views on future inflation.

Geopolitical risks hit US consumer

Today’s University of Michigan consumer sentiment report demonstrated how the current geopolitical uncertainty is impacting US consumers. The “Current Conditions” subindex is now at the highest level since the recession (beating forecasts), while the “…