Inflation is like when your favorite candy bar gets more expensive every year. At first, it doesn’t seem bad, you still buy one every week. But over time, those small price increases can add up, and soon, that candy bar feels like a big expense. Inflation rates tell us how fast prices are going up. When the rate is high, everything costs more quickly, that’s why people get worried about it.
Examples
- Your sandwich used to cost $3, but now it’s $4, that’s inflation.
- A toy you loved as a kid costs twice as much now as when you were 10.
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