Rising prices can often lead consumers to switch their spending to other things, rather than cutting back overall. Right now, for instance, Americans are switching more of their spending from physical goods to services. And that shift is evident in the categories where prices are rising. “Most people in America spend pretty much their whole budget anyway,” said Eric Swanson, an economics professor at the University of California, Irvine. “So the money’s going to get spent, it’s just a question of what it’s going to get spent on.”

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