Last year, inflation hit a 40-year high, dealing a big blow to many consumers. On the other hand, unemployment was low and many workers saw wage gains. WSJ reporters Gwynn Guilford and Rachel Wolfe unpack the confusing currents in the 2022 economy and what to expect this year. Further Reading: - Inflation Takes Biggest Bite From Middle-Income Households  - Baking Supplies Cost a Lot More This Year. But That Flat-Screen TV Got Cheaper.  - Big Banks Predict Recession, Fed Pivot in 2023  Further Listening: - How High Will Interest Rates Go?  Learn more about your ad choices. Visit megaphone.fm/adchoices