The current bout of inflation in the United States and other countries is a new experience for younger people. The US has not seen this level of general price changes in over 40 years. The largest price changes have been limited to a few categories of goods, but there is evidence that the inflationary pressures have affected consumer decisions. For example, the recent evidence indicates that housing sales are declining due to higher home prices and mortgage interest rates. Also, the most recent government data shows that people are buying less food after expenditures are adjusted for inflation.

From your personal experience, which categories of goods or services have seen the largest price increases in the past year? Have you adjusted your purchases in response to inflationary pressures? Do you think the US economy will enter a recession in the coming year?