Inflation is when money loses its value over time, and prices go up. Some countries have high inflation because they print too much money, like giving everyone extra candy without making more candy. This makes the candy less special, and everything costs more.
Examples
- A country prints extra money for everyone, so a candy bar that used to cost $1 now costs $2.
- Everyone starts spending quickly before prices go even higher.
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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?