In June 2019, the average price of a cup of coffee in Venezuela was 6,500 bolivars; in June 2018, the average price was just 8 bolivars. This represents an 81,150% increase in the price of a cup of coffee for Venezuelans, who have seen similarly dramatic increases in the prices of nearly everything they buy. How might this experience of inflation impact inflation going forward? Higher inflation creates a price bubble that ultimately bursts, causing the prices of most goods and services to fall. causes inflation expectations to fall, which in turn causes inflation to fall. causes inflation expectations to rise, which in turn causes still higher inflation. makes most goods and service unaffordable, causing a decrease in demand that leads to fallin