Is the cost of living crisis the new normal?

Context

The cost of living crisis refers to sustained periods when household expenses—particularly for essentials like energy, food, and housing—rise faster than wages, squeezing family budgets and reducing purchasing power. Since 2021, multiple shocks including supply-chain disruptions, energy price spikes, and geopolitical tensions have kept inflation elevated across developed economies. The debate now centers on whether these pressures represent a temporary crisis or a structural shift toward permanently higher costs that societies must adapt to.