What Campbell’s Soup Tells Us About the Economy

If you want to understand how inflation will affect the U.S. economy, take a close look at two industries: packaged consumer goods and restaurants.

Markets are focused intently on inflation. Is it picking up, and what will that mean for profit margins, interest rates, and the Federal Reserve’s monetary policy? Investors and economists dutifully track the monthly economic data, but there’s something to be said for seeing how actual companies are experiencing changes in prices and wages. Consumer-goods and food-service businesses are great candidates, because they’re among the most sensitive and they happen to be in the midst of reporting earnings.