Ten Signs The Double-Dip Recession Has Begun - 24/7 Wall St.:
There is almost nothing that damages consumer confidence as badly as a rapid rise in prices. Starbucks recently increased the price of a bag of coffee by 17% because wholesale prices have risen by almost twice that rate in the last year. Cotton prices nearly doubled in 2010 but has fallen this year. But, apparel is made months in advance of when they reach store shelves. Summer clothing prices are up as much as 20%. That may change in the fall, but for the time being, the consumer’s ability to buy even the most basic clothing has been undermined. Consumers today pay more for sugar, meat, and corn-based products as well."