Inflation

Inflation means prices are rising over time. In simple terms, the same amount of money buys less than before. It is often used to measure how quickly the cost of living is increasing. When inflation is high, people may feel pressure because food, rent, gas, and other everyday costs become more expensive. For example, if a basket of groceries cost $100 last year and costs $108 this year, inflation has made that same basket more expensive. Inflation does not mean every price rises at the same speed. Some prices may rise quickly, some may rise slowly, and some may even fall.