Overall inflation, as measured by CPI, stood at 7.1% in November, compared to the year earlier. This product saw its price rise by 7 times that amount! 

Answer: Eggs

Questions: 

• Have you noticed inflation (the increases in prices) in items that you or your family purchase in your own lives?
• Which of the items above do you think consumers will buy less? Which of the items do you think they will not change their behavior despite the price increases? 
• Pick one of the items from the list and come up with a substitute that a consumer might choose.
  

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

Behind the numbers (CNBC):

The surge in egg prices has stood out in a year when Americans saw their bills balloon across the grocery store.

Average egg prices jumped 49.1% in November compared with those a year earlier — the largest annual percentage increase among all grocery items in that period, according to the consumer price index, a barometer of inflation.

By comparison, the overarching “food at home” category was up 12%.

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Looking for ways to bring inflation to life for your students? Here's a sampling of NGPF activities on the topic. 

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Ever wonder how the Bureau of Labor Statistics calculates the CPI? The answer might amaze you. Listen to this brief Indicator from Planet Money podcast to learn more. 

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.