Why Do Inflation Rates Happen?

Imagine you have a piggy bank with your favorite candies. If everyone buys more candy at once, the store runs out and has to raise prices so they can still sell it, this is like inflation rates. It happens when too many people want the same thing at the same time.

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Examples

  1. Your favorite candy costs twice as much because everyone wants it at once
  2. Your parents buy more groceries than usual, so the prices go up
  3. You want to buy a new toy, but it’s now twice as expensive

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Categories: Economics · inflation· economy· money