Supply chains, worker wages and the price of energy has been blamed for the current bout of high inflation. But central bankers around the world are starting to clue in to something consumers have been aware of for a while — corporations just aren’t afraid to raise their prices anymore.
Locally, I’ve been seeing restaurants closing at a rate of 1-2 per week for the last several months.
Which I take as an early indicator that businesses are starting to feel the pinch.
Restaurants should be one of the first business types to feel the impacts of an economic slowdown since they are entirely discressionary spending for the vast majority of people.
Our local pro sports teams are also complaining about low attendance this season, which is happening for the same reason that people aren’t eating out as much.