Why Do Inflation Rates Sometimes Jump Overnight?

Imagine you're at a lemonade stand, and suddenly all the lemons double in price, that's like sudden inflation. It doesn't always happen slowly; sometimes it feels like everything gets more expensive overnight. This can happen when people think prices will keep rising, so they buy things now before they get even more expensive.

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Examples

  1. A lemonade stand raises its price from $1 to $2 overnight
  2. All your favorite candy bars double in price on a single day
  3. Your family's groceries suddenly cost twice as much

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