Imagine you go to the store and everything costs a little more, that’s inflation. But sometimes, even though prices are still going up, the average rate of inflation goes down. That happens when some things get much more expensive, but others barely change or even get cheaper. It's like if your friend gets taller every year, but you only grow a little, on average, the group is growing slower.
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See also
- Why Do Inflation Rates Change So Often?
- Why Do Inflation Rates Differ So Much Between Countries?
- Why Do Inflation Rates Change So Quickly?
- Why Do Inflation Rates Fluctuate So Wildly?
- Why Do Inflation Rates Feel So Wild?