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Furthermore, you should make the difficulty choice yourself. If you're new to CRPGs then play Normal. Normal provides a challenge, but still gives you an opportunity to learn.
As for hard, if you're a masochist, you'll love that difficulty. With two camping supplies, you might as well have none.
So start your game in normal, then raise it to hard. If it's too hard go back to normal or even easy.
For instance...instead of a wolf in the wilderness...you might encounter 2x young wolves and 1x Wolf.
Path of the Damned was said to be the only difficulty setting that modified mobs actual stats. So a creature that had 20hp might have 35 instead. HIgher defense and hits harder.
Also. Raising the difficulty curbs the amount of camping supplies you have. Normal gives you 4. Hard gives you 2.
Hard = 2x camp supplies. More enemies per encounter or less but more powerful enemies in some cases. Monster stats stay the same.
Path of the Damned is where enemy stats are getting better.
Hard requires much more micromanagement and good party setups. You still get owned sometimes because your tactics don't work and might have to redo fight more often than in normal difficulty.
If you have played similar games like Divinity Original Sin, Dragon Age origins, Baldurs gate series etc. I recommend picking hard. If you are new to this genre pick normal.