Jim Power: Irish consumers likely to face higher food prices

The Ukraine war coming on top of the Covid-related difficulties is just a perfect storm in relation to inflation

Given how accustomed consumers have become to food price compression as a result of intense domestic retail competition and competition from imports, an escalation in food prices would come as a significant shock. 

For central bankers and policymakers, the past decade has been pretty straightforward. Growth was anaemic, particularly in Europe and Japan, and inflation has been conspicuous by its absence, meaning there were few hard choices to be made.

Alas, all of that has changed in dramatic fashion over the past six months and the controllers of monetary policy are now facing serious challenges, and in many ways, a very unenviable task.