CNN Business Opinion: Spending on consumer goods will likely plummet in the second half of the year

Opinion by Gad Levanon for CNN Business Perspectives

APRIL 25, 2022

With the fear of Covid-19 on the wane, consumers are spending much more on in-person services, like travel and entertainment, powering an impressive comeback in that sector. However, something has got to give. And that something is consumer spending on goods, like clothing, furniture, appliances and recreational equipment, which is in for a rough second half of 2022.

Over the past year, the Consumer Price Index, a key inflation measure, has increased by 8.5%, the fastest in 40 years. Even worse, inflation is likely to remain high in 2022. The Producer Price Index, which measures inflation before it reaches the consumer, indicates that there is a lot more upward price pressure to come.…

https://www.cnn.com/2022/04/25/perspectives/consumer-goods-services-spending-economy/index.html