7. Identifying costs of inflation Felix manages a grocery store in a country experiencing a high rate of inflation. He is paid in cash. On payday, he immediately goes out and buys as many goods as he can for himself for the next two weeks in order to prevent the money in his wallet from losing value. What he can't spend, he converts into a more stable foreign currency for a steep fee. This is an example of the of inflation.menu costs shoeleather costs ing a high rate of inflation. He is he immediately goes out and buys as unit-of-account costs eeks in order to prevent the mone ng value. What he can't spend, he ep fee. This is an example of the of inflation