What’s Up With Inflation?

1. Set Focus 
Pose this essential question: Why is economic stability important to a society?

2. Read and Discuss 
Have students read the article, marking key ideas and questions. 

• What is inflation? Why is inflation that climbs faster than usual considered undesirable? (During inflation, prices increase. Faster than usual inflation is considered undesirable because paychecks don’t keep up with rising costs. People have to make difficult choices about how to spend their money, such as whether to buy food or pay their rent.)

• According to the article, why are we experiencing inflation today? (The article says that today’s inflation is partly a result of the Covid-19 pandemic, which created supply-chain issues, leading to higher prices. In addition, many people spent more, which also contributed to prices rising. Furthermore, the article says that Russia’s invasion of Ukraine is partly responsible for inflation, as the U.S. and the European Union banned most Russian oil. This led to an increase in prices on gasoline and products that use oil.)

• What can the Federal Reserve do to try to slow inflation? (To try to slow inflation, the Federal Reserve can raise interest rates. This makes borrowing more expensive, so people are less likely to borrow, and, therefore, they are less likely to make purchases. Demand for products is reduced, companies are more likely to reduce their prices to attract customers, and inflation slows.)

3. Core Skill Practice
Assign, print, or project the activity Making Connections. Have students use the graphic organizer to explore causes and effects described in the article.

4. Writing Prompt
Research deflation. Then write a brief essay explaining what deflation is and how it affects the economy and society.

5. Classroom Debate
Should the U.S. lift its ban on Russian oil?

6. Quiz & Skills
Use the quiz to assess comprehension and Organizing Ideas to review outlining skills.