#cost-of-living-impact

#cost-of-living-impact

"Fresh food and perishables are almost like the canary in the coal mine," when energy prices go up, according to Vidya Mani, an associate professor at the University of Virginia's Darden School of Business.

The price of oil has risen steadily since the war began at the end of February, with crude oil prices surging past $110 per barrel this week. Fuel prices have risen in part because Iran controls access to the strait of Hormuz, a narrow passageway between the Persian Gulf and the Gulf of Oman where about 20% of the world's oil travels through.

"Jobs may be a bit modest when we look out over the last couple of years, but pay is telling a different story - that there is still a little bit of tightness in this labor market," ADP chief economist Nela Richardson told reporters Wednesday morning.

High energy prices are kryptonite for the housing market. Affordability, especially for those first-time home buyers, is now an elusive dream until oil prices come down and interest rates come down.

The US dollar returned to the upside as geopolitical fears rebounded after US President Trump's address to the nation. The rhetoric fuelled risk aversion and flows toward the dollar while oil prices surged.

Fatih Birol, president of the International Energy Agency, warned that the war in Iran is the greatest threat to energy security in history, with analysts describing the situation as an Armageddon.