Imagine you have a piggy bank with your allowance. One year, the candy bars at the store cost $1 each, but next year, they’re $2! That’s like inflation: prices go up over time. Sometimes it happens fast, like when people are really excited about something new, or slow, like when there’s not much happening in the world.
Examples
- A bag of chips that cost $2 last year now costs $3.
- Your mom buys a loaf of bread with the same money she used to buy two loaves last year.
- The toy you wanted for Christmas now costs double what it did when you asked for it.
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See also
- Why Do We Have Different Kinds of Taxes?
- Why Do Prices Change So Much?
- Why Do We Use Money Instead of Bartering?
- Why Do Prices Go Up So Much When There's a Shortage?
- Why Do We Have Different Kinds of Coins?
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Categories: Economics · inflation,economics,money,finance