Food, gas prices pinch families as inflation surges globally

BUDAPEST, Hungary (AP) — From appliance stores in the United States to food markets in Hungary and gas stations in Poland, rising consumer prices fueled by high energy costs and supply chain disruptions are putting a pinch on households and businesses worldwide.

Rising inflation is leading to price increases for food, gas and other products and pushing many people to choose between digging deeper into their pockets or tightening their belts. In developing economies, it's especially dire.

“We've noticed that we're consuming less,” Gabor Pardi, a shopper at an open-air food market in Hungary’s capital, Budapest, said after buying a sack of fresh vegetables recently. “We try to shop for the cheapest and most economical things, even if they don't look as good."

Nearly two years into the COVID-19 pandemic, the economic impact of the crisis is still being felt even after countries raced out of debilitating lockdowns and consumer demand rebounded. Making things worse, a new surge of infections is leading to renewed restrictions in Europe and other parts of the world.

The reverberations are hitting central and Eastern Europe especially hard, where countries have some of the highest inflation rates in the 27-nation European Union and people are struggling to buy food or fill their fuel tanks.

A butcher at the Budapest food market, Ildiko Vardos Serfozo, said she's seen a drop in business as customers head to multinational grocery chains that can offer discounts by buying in large wholesale quantities.

“Buyers are price sensitive and therefore often leave us behind, even if our products are high quality. Money talks,” she said. “We notice that inflation is not good for us. ... I’m just glad my kids don’t want to continue this family business, I don’t see much future in it.”

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