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How U.S. Inflation Expectations Are Being Shaped by Consumer Choices

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Economic policymakers are razor focused on inflation expectations after more than a year of rapid price increases. Consumers explain how they’re thinking about rising costs.July 27, 2022Inflation started in the bacon aisle for Dan Burnett, a 58-year-old former medical center administrator who lives in Margaretville, N.Y.Last summer, he began to notice that the breakfast staple was increasing sharply in price, jumping to $10 from $8 per pack at his local grocer. Before long, a wide variety of food products were more expensive — so many that he began driving 45 miles to shop at Aldi and Walmart, hoping to score better deals. This summer, it seems that inflation is across the board, pushing up prices on brake repair, hotel rooms and McDonald’s fries.“My biggest fear is that they don’t get it under control, and that it just persists,” Mr. Burnett said. He is thinking about how he might have to …

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