Capital Economics: The Onset of Energy Cost Pass-Through Raises Global Non-Fuel Inflation Risks Sharply
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```htmlGolden Ten Data reported on April 3 that Simon MacAdam, economist at Capital Economics, pointed out that rising energy prices could have indirect inflationary effects on global non-fuel commodities. MacAdam believes that higher energy prices will prompt companies to pass increased fuel costs onto consumers, thereby raising prices for non-fuel items such as electricity, food, and transportation. He specifically mentioned that food production is an energy-intensive industry, especially in the fertilizer manufacturing segment; rising food inflation will then add price pressure to the catering and hospitality sectors. Furthermore, energy price shocks will also increase production costs for energy-intensive materials such as refined metals, recycled rubber, and wood pulp.```
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