Like sharing cookies
When things cost more
Sometimes the cookies also get bigger or more expensive. If you still have 10 cookies, but now each one costs 2 cookies’ worth of money, it feels like you’re getting less for what you give. That’s like when prices go up, even if there's the same amount of money, things feel more expensive.
So, when money feels tighter, it’s either because there are more people sharing it or things cost more, just like with cookies and friends!
Examples
- A candy bar used to cost $1, now it's $2.
- Your weekly grocery bill went up by $10.
- You got a raise, but rent increased even more.
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See also
- What is Consumer Price Index (CPI)?
- How does global inflation impact the everyday cost of living?
- Why Are Some Things Always Getting More Expensive?
- Why Is Inflation Like a Broken Scale?
- Why Do Inflation Rates Fluctuate?