With a gallon of milk up about 25% since before the pandemic, and retail bacon 35% higher, it’s hard to imagine how US food inflation could get any worse. But evidence suggests that even higher prices are on the horizon. Consumers have actually been shielded so far from the full brunt of soaring expenses that are facing producers, distributors and small businesses like restaurants. But they can only hold back for so much longer.

Stagflation may be coming, but 68% of fund managers believe inflation has already peaked, Bank of America’s May Global Fund Manager Survey shows. Top economists and money managers worldwide are warning that rising consumer prices and falling economic growth are combining to form a deadly recipe for the global economy – stagflation.

Some 77% of investment fund managers say they see “below-trend growth and above-trend inflation,” a.k.a stagflation, as the most likely outcome for the global economy over the next year, according to a May survey from Bank of America Global Research. That’s the highest percentage seen since August 2008.