Macroeconomics 11th Edition by Michael Parkin

Exercise 3

Best to Get Used to High Food and Energy Prices-They're Here to Stay
Rising energy and food costs are slowing the economy at a time when it is already facing severe headwinds. Just as Western Europe and North America are showing a bit of sparkle, along comes another oil price shock or food price shock to put out the light.
On top of rising energy prices, a severe U.S. drought, a poor monsoon season in Asia, and a bad harvest in Russia and Ukraine have sent grain prices soaring. Globally, this is the third major food price shock in five years.
Explain what type of inflation the news clip is describing and provide a graphical analysis of it.