How Inflation Actually Works
The gist
Inflation means the general prices of goods and services rise over time, which causes the value of money to decrease.
Explain like I'm 5
Imagine you have 10 candies today, and each candy costs 1 coin. If tomorrow candies cost 2 coins each, your 10 coins can buy fewer candies—that's inflation.
Big picture
Inflation affects how much people can buy with their money and influences economic decisions by consumers, businesses, and governments worldwide.