The cost-of-living crisis as a result of the lingering pandemic — and more recently Russia’s onslaught in Ukraine — is being felt acutely around the globe. In advanced economies like the US and UK, the cost of food has increased dramatically because of logistical problems getting commodities out of Black Sea ports, as well as disruptions to harvesting in the region. Even before the pandemic, the US, which has a more dynamic economy than Europe’s — and a Federal Reserve that pursues policies favoring full employment — had a higher base inflation rate than many of its European counterparts. The Consumer Price Index is used globally to measure the average change over time in prices paid by consumers and is widely used to measure inflationary trends. We look at the CPI of breads and cereals in the UK and US since 2003.
