Inflation is when prices go up. Imagine you have a piggy bank with $10, and it buys you 10 candies. A year later, that same $10 only buys you 5 candies because the price of each candy doubled. That’s inflation, like when money loses its power over time.
Examples
- Your favorite pizza used to be $10, but now it's $12.
- Your allowance is still $10 a week, but you can't buy as much candy anymore.
- The same toy that cost $5 last year now costs $7.
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See also
- What Causes ‘Inflation’ and Why Does It Affect Everyone?
- What Causes ‘Inflation’ and Why Does It Matter?
- How Did ‘Money’ Become a Symbol of Wealth?
- How Do ‘Currencies’ Get Their Value and What Determines It?
- How Did the Idea of ‘Money’ First Begin?
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