Higher petrol, coal and gas prices are a growing risk for retail, food and beverage companies. The magnitude of earnings downside would be in the order of 5%-10% if the higher prices continue for a full 12 months. We see near-term risk around transport costs for food retailers. For consumers, higher petrol prices may take away up to 0.7% from consumer spending. It’s equivalent to a 60bp interest rate increase. However, the price increase is still within the scope for households to absorb by lowering their savings rate rather than lowering spending.