Yes; you will buy them with the last one dollar in your pocket, instead of the last two dollars. The price can vary fluidly even if the quantity consumed does n

Yes; you will buy them with the last one dollar in your pocket, instead of the last two dollars. The price can vary fluidly even if the quantity consumed does not. A century ago, a loaf of bread cost only a nickel and that's not because people ate less or because food supply was more plentiful or demand more elastic. But even setting that aside, interest rates operate on aggregate demand which is averaged across all goods, just like inflation is.