What is infation?

Inflation is the general increase in prices of goods and services over time. When inflation occurs, the purchasing power of money decreases, meaning you can buy less with the same amount of money.

 

For example, if a loaf of bread costs $1.00 this year but $1.20 next year, that’s inflation. It’s often caused by higher demand than supply, rising production costs, or too much money circulating in the economy.

 

While moderate inflation is normal and can signal economic growth, high inflation can hurt people’s savings and increase the cost of living.