Is the cost of living crisis the new normal?

Context

The cost of living crisis refers to a sustained period when household expenses—particularly for energy, food, and housing—rise faster than wages, squeezing family budgets and forcing difficult trade-offs. Since 2021, multiple shocks including pandemic supply disruptions, energy market volatility, and geopolitical conflicts have kept prices elevated across developed economies. The debate centres on whether these pressures are temporary or have become a structural feature of modern economies, with significant implications for wage policy, central bank strategy, and social stability.