Compare past and present prices, suggest simple savings, and explain what you would keep.
Fictional examples welcome. You never need to disclose your income, bills or family circumstances.
You go to the supermarket with the same money as before. You buy fewer things. The cost of living is the money we need for everyday life: food, a home, travel and bills. When many prices rise, we call this inflation. But prices do not all change in the same way. One food can become cheaper while another becomes much more expensive.
The charts compare prices in Spain. Look at the dates carefully. The one-year, five-year and ten-year figures all finish in October 2026. The OCU food chart uses a different study period. OCU is a Spanish consumer organization. Its basket is not the same as the government’s basket. Both can help us ask better questions about shopping.
People can try to spend less. They can compare prices, buy store brands or use food they already have. Some eat out less often or wait before buying new clothes. These are possible choices, not rules for every family. A cheaper shop is not always near home. A large pack is not useful if you cannot finish the food.
A pay raise helps, but we also need to ask what that money can buy. Imagine your pay rises by 3% and your usual shopping costs 5% more. You have more money, but you can buy less with it. This is an example, not a report about everyone’s pay.
What should the government do? It could limit some prices or give extra help to people who need it. Shops also need enough money to pay workers and buy products. There is no easy answer for every situation. Start with a simpler question: what would you spend less on, and what would you protect?
Original classroom writing. Research snapshot: 13 November 2026.
Do not add overlapping periods. A slowing positive rate is not a falling price level.
| Month | Annual CPI rate |
|---|---|
| Oct 25 | 3.1% |
| Nov 25 | 3.0% |
| Dec 25 | 2.9% |
| Jan 26 | 2.3% |
| Feb 26 | 2.3% |
| Mar 26 | 3.4% |
| Apr 26 | 3.2% |
| May 26 | 3.2% |
| Jun 26 | 3.2% |
| Jul 26 | 3.6% |
| Aug 26 | 4.3% |
| Sep 26 | 4.9% |
| Oct 26 | 4.9% |
| OCU selected product | Change |
|---|---|
| Tomatoes | +33.2% |
| Lemons | +25.2% |
| Cauliflower | +22.8% |
| Eggplant | +20.4% |
| Megrim fish | +19.4% |
| OCU whole basket | +1.8% |
| Mashed potato mix | -14.8% |
| Artichokes | -15.1% |
| Canary Islands bananas | -22.6% |
Explain a phrase, check its meaning, then use it in a spending decision.
Answer in pairs and identify a supporting sentence. Keep opinion separate from a reading fact.
In the US, Hamburger Helper is a box of pasta and sauce mix. For one popular type, you add ground beef, water and milk. It makes the meat go further. Instant ramen noodles are another familiar student-budget meal. Neither food is everyone’s choice! What do you eat when you want a cheap meal?
A brief cultural aside, not a separate economics unit. Optional: the 2025 opinion article · What is in the box?
Real example, Spain: in April–June 2026, average gross pay costs rose faster than the general price index compared with a year earlier. That does not mean every worker received a raise. A different worker may still have less money left after bills.
INE wage-cost releaseIn an ONS survey of adults in Great Britain in August 2026, 59% reported spending less on non-essentials because of rising living costs, 43% shopping around more and 38% spending less on food shopping and essentials. These are self-reports, not Spanish statistics; people could take more than one action.
ONS survey and methodsA worker receives 3% more pay while their usual basket costs 5% more. Has the pay rise improved what they can buy? What else would you want to know?
Federal Reserve Education · Inflation
Watch only the opening three minutes, or stop earlier after the basket explanation. Historical prices are examples from the video, not today’s prices. This is a US explainer; its policy target and methodology require context.
Open official video and transcriptInflation is a broad increase in prices over time. A low price in the past does not prove something was easier to afford, because pay was different too. A price basket combines many purchases. It describes an average pattern, while households spend their money differently.
Official page and transcript checked; video playback has not been verified here. The fallback is original classroom narration, not an authentic transcript.
The fictional household has €2,100 a month and currently spends €2,100. Next month, essential costs rise by €80. Choose changes worth at least €80 from the options. Keep essential care and enough food. Explain two changes and one thing you want to protect.
| Item | Euros per month |
|---|---|
| Housing and bills | €1050 |
| Food and household goods | €420 |
| Transport | €160 |
| Health and essential care | €90 |
| Phone and internet | €60 |
| Social life and subscriptions | €120 |
| Savings / emergency buffer | €100 |
Income €2,100 · current spending €2,100 · new cost €80.
| Possible change | Monthly saving |
|---|---|
| Switch some brands / reduce food waste | €25 |
| Cancel one subscription | €15 |
| Two fewer takeout meals | €30 |
| Walk or use an existing bus pass for suitable trips | €20 |
| Renegotiate phone plan | €10 |
| Delay a non-urgent purchase | €30 |
| Reduce the savings contribution this month | €40 |
Compare quality, time, transport and access. Do not cut essential care or recommend skipping meals.
Final outcome: Agree on a plan, defend one protected priority and explain a tradeoff.
Compare the three options. What problem do you want to solve first?
The government sets a maximum price for a few important products. This can help shoppers. But shops must still pay for products and workers. What if the maximum price is too low?
The government gives money or food vouchers to people who need help. Who should receive it? How can people apply easily?
Lower taxes on some products could reduce prices if shops pass the saving on. More choice between shops could help too. How would we check that shoppers benefit?
Who benefits? Who pays? What could go wrong? How would you check whether it worked?
Plan a low-cost evening for four friends. Give three options, explain travel costs and choose one together.
One useful expression. One claim you can support with data. One choice or opinion you reconsidered.
Related: The Repair Revolution · Related: The Four-Day Workweek · All versions of this topic
60-minute route: warmer 5; reading and comprehension 12; charts 8; vocabulary and useful language 8; selected discussion 12; decision and exit ticket 15. Optional media replaces part of discussion; add the extension and policy clinic for 90 minutes.
Use the chart values orally: rose, fell, more expensive. Do not require percentage calculations. Explain price caps as maximum prices. Offer fictional answers throughout.
Budget example: €25 brand/waste changes + €15 subscription + €30 fewer takeout meals + €10 phone plan = €80. These are fictional estimates. Do not count the same food saving twice. Teen plan: picnic €20 total or free local event up to €10 with optional snacks; café €28 exceeds €24.
Listening guidance: Old prices need old pay for an affordability comparison; a basket measures a collection, not each household. Answer using the excerpt actually played; use the original fallback if unavailable.
Anticipated pitfalls: Slower positive inflation is not falling prices; cumulative periods overlap; percent and percentage points differ; nominal sales and sales volumes differ; cheap food is not automatically an “inferior good.” The food aside should take about two minutes, not become a major section.