Answer: Coffee with 8.9% increase

Questions:

• Why do you think prices for these items are increasing?
• Have you noticed other items that you typically buy going up in price? 
• Why do you think inflation matters? If someone's pay goes up 3% and prices (inflation) go up 4%, have they gained or lost purchasing power? Explain. 

Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom.

Behind the numbers (WSJ; subscription required):

U.S. companies are raising prices on everything from plane tickets to paint, passing on to customers higher costs for fuel, metal and food after years of low inflation. Clorox Co. CLX -2.86% said it raised prices in the latest quarter on such products as cat litter, and Coca-Cola Co. KO 0.52% reported higher prices for the quarter. Other goods makers, as well as airlines, also have announced price increases over the past week. The higher prices have effectively ended a long period of low inflation that led the Federal Reserve to keep short-term interest rates near zero for years.

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Looking for an activity to engage students while learning about inflation? Check out Analyze: Understanding Inflation. 

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.

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