Start eating out more?
In practice, this isn't at all clear. I keep posting a simple example, and nobody seems to have a good story for how the actions taken by the individual in the scenario will lead to broad CPI increase.
Here's the example again -- please post your mechanisms in the comments:
You're a responsible Brazilian living in your decent Sao Paolo apartment (paid off!). You have a tidy pile of cruzeiros in your local bank, saved from the income your reasonable private sector job generates. But it's 1979 and you're worried about inflation looming on the horizon. What do you do?
I'm interested in two things, but all ideas are welcome. First, the above situation is not hypothetical, so people actually made decisions in these circumstances. If anyone knows what folks did in real life, I'd love to hear them. Second, this example is meant to focus on exactly how increasing inflation expectations actually leads to rising CPI. No hand-waving please, I need transactions!