What are inflationary pressures?

Inflationary pressures are when prices go up because there’s more money around and not enough things to buy.

Imagine you have a piggy bank full of coins, and your favorite toy store only has one unicorn plushie. You really want that unicorn, so you’re willing to pay more for it, maybe even give away some of your candy bars to get it. That’s like inflationary pressure, when there are too many people wanting the same thing, they might have to pay more for it.

Think about going to the grocery store with your mom or dad. Sometimes, the price tag on a bag of chips goes from $2 to $3. That’s inflationary pressure, there are more people wanting to buy snacks, but not enough bags of chips to go around.

If this keeps happening, everything might get more expensive, like your favorite ice cream or even your school lunch. It's like the piggy bank got bigger, and now every toy costs a little bit more!