The Gobbler

Once upon a time in Traverse City, Michigan, there existed the most delicious sandwich on the face of this planet. Dubbed “the Gobbler” by locally owned restaurant, Mary’s Kitchen Port, it was an unfussy but delectable culinary creation. It consisted of stacked layers of sliced roasted turkey, romaine lettuce, finely shredded cheddar cheese and real Hellman’s mayonnaise, all on freshly baked homemade focaccia bread, laced daintily with sea salt. I first experienced this perfect ratio of ingredients in 2014. I remember its $5.99 price at the time. When the store sadly closed its doors on August 1, 2025, the Gobbler cost $8.49. In eleven years, the price of the sandwich had slowly increased over time by $2.50.

Over the years, the price of this cherished sandwich had inched up, mainly due to what economists refer to as creeping inflation. Inflation can nibble or even “gobble” away at the purchasing power of our hard-earned dollar, making the things we buy more expensive over time.

Economists typically categorize inflation into four types or stages based on speed: creeping, walking, galloping and hyperinflation. If we continue with the use of a mouthwatering sandwich as our example, we can examine each of these stages of inflation in turn.

First, we must begin with the concept of “fair price,” which is the reasonable cost for the sandwich, balancing value for the buyer with profitability for the seller. The hungry buyer finds worth in the seller’s ability to cover costs and earn a reasonable profit. In this symbiotic sale, the consumer is satisfied (happy stomach) and the seller is financially successful (happy business wallet). This results in a win-win transaction where both buyer and seller mutually benefit from the exchange.

Stage 1: Creeping Inflation (Slow: Less than 3% Annually)

Now imagine, a gentle rise sets in. The flour for the focaccia becomes slightly more expensive, requiring more “dough” on the part of the seller to purchase the ingredients that go into making the sandwich. Thus, to maintain its ability to make a profit, the sandwich shop puts up a new price sign, and the seller explains with a quick shrug that the sandwich now costs just a slightly bit more. The hungry consumers seeking happy stomachs still come and buy their lunch without too much worry. The negligible rise in cost is the “yeast” of their worries.

Stage 2: Walking Inflation (Moderate: Between 3-10% Annually)

Now suppose, due to extreme drought, the entire wheat crop is damaged. And then fuel prices climb based on mounting fears of supply disruptions. The shop owner cannot cover the cost of flour without raising prices. Flour is not the only thing that “got a rise”, so too does the price of the sandwich. So, once again a new and higher price sign is posted. People still came in and buy the sandwich, but with a “bite” of hesitation. Now, they check their purses and wallets and even order water instead of the raspberry lemonade. The line for the sandwiches at lunchtime gets shorter and money does not stretch as far.

Stage 3: Galloping Inflation (High: 10-1,000% Annually)

Yikes! Now assume that suppliers of the sandwich ingredients start calling regularly with new prices. In turn, the owner stops printing the price on the sign because it quickly becomes outdated. The owner begins to make the portions of bread for each sandwich smaller, and the formerly formidable stack of turkey shrinks as well. Wide-eyed customers notice: it is not the same sandwich. People still interested in the sandwich start to come when the shop opens first thing in the morning, fearing additional price increases throughout the day.

Stage 4: Hyperinflation (Extreme: 1,000% or More Annually)

Finally, imagine chaos comes knocking on the sandwich shop door. In one week, the price of the sandwich rises by 75%. The store owner buys a chalk board and erases and rewrites the price of the sandwich almost hourly. As soon as workers receive their paycheck, they run to the shop to buy a sandwich before the price goes up even more. Cash feels useless because what it can buy changes so quickly. Prices are rising faster than people can imagine and desperation sets in.

Now, returning to reality, Mary’s Kitchen Port, home of the legendary “Gobbler,” did not actually close its doors due to creeping, walking, galloping or, thankfully, hyperinflation. Rather, the owners of Mary’s Kitchen Port shut their doors last year in order to set out on their retirement journey. The above-illustrated sandwich story is merely intended to help demonstrate the four types of inflation with a mouth-watering real-life story of an exemplary sandwich; and to show how shifts in the stages of inflation can impact our daily lives along with the simple things we enjoy. In reality, the Gobbler’s price increase from $5.99 to $8.49 over eleven years represents a compound annual growth rate of just 3.22% – indicative of creeping to slightly walking inflation. While the concept of inflation can be quite complex, I hope this sandwich parable was able to give you a “taste” of the four stages of inflation – creeping, walking, galloping and hyperinflation.