The inflation in goods of first necessity can crush consumer spending. Think the inflation caused by FX weakness or by elevated energy prices. It happened in many economies going through a crisis. Asset prices deflate, discretionary goods deflate. But the inflation is very palpable then. The salaries follow, under political pressure. Sometimes the sequence of events flips. :)
The wild card here is energy prices no? A lot of grumpiness from the general public is from gas prices - the stuff they see every day.
The inflation in goods of first necessity can crush consumer spending. Think the inflation caused by FX weakness or by elevated energy prices. It happened in many economies going through a crisis. Asset prices deflate, discretionary goods deflate. But the inflation is very palpable then. The salaries follow, under political pressure. Sometimes the sequence of events flips. :)