B2 – Upper Intermediate
Seeing the prices of goods rise in our preferred supermarket is probably no longer shocking, as it is just the way things are these days. Even if we are aware that it is inflation, we nevertheless find ourselves wondering why because the majority of us are looking for solutions, particularly, relief from the strain that inflation has placed on our finances.
To understand why prices can’t stay the same, watch the video below.
Vocabulary Questions:
- Explain “virtuous cycle” in economics. “When supply chain interruptions created product shortages and some companies artificially drove up prices to increase their profits, which along with some other causes, effectively turn this virtuous cycle into a vicious one.” Construct your own sentence.
- What does “deflationary spiral” mean? “Falling prices sound pretty good, but they can also introduce another kind of cycle: a deflationary spiral.” Make your own sentence using this term.
- What is the meaning of “in no small part“? “Japan is finally emerging from decades of chronic deflation, but that’s thanks, in no small part, to the high inflation that most of the world battled over the last few years.. Give two (2) synonyms or similar expressions and use ‘in no small part’ in your own sentence.
Discussion Questions:
- What are the factors mentioned in the video as to why prices can’t stay the same?
- Share your thoughts on this, “A little inflation is a good thing.“.
- How is inflation affecting the people in your country? Across the globe?
- Do you agree with this assertion, “It’s okay if prices rise so long as wages rise too. You’ll still be able to afford the same goods if your wages keep pace with inflation.“? Explain your stance.
- What strategies can you recommend to counteract the strain that inflation has placed on our finances?