MoneyMakingEasier

I would not be surprised how little people actually know about inflation. You may know the idea of it but in this blog, I give you all the facts.

So… what is inflation?

The scientific definition of inflation is, inflation is the sustained increase in the general price level of goods and services in an economy over time. Which basically means that as prices rise, the purchasing power of money falls, meaning each dollar buys fewer goods and services than before.

Examples of inflation

• If a loaf of bread costs $2 one year and $2.10 the next year, the inflation rate for that item is 5%.
• A gallon of milk costs $3.00 this year but $3.30 next year.
• Rent for an apartment increases from $1,200 to $1,350 per month.

Inflation prices are rising and so are the costs. But why it’s effecting people is because while the prices rise the money you earn stays the same. $1 now could be about $0.74 in 10 years.

Most people can’t afford most things because of its high prices which is why inflation is hurting around 40% of the world today. Around 55% of adults state that rising prices are causing financial hardships.

To sum inflation up it is when over time things become more expensive. While people get paid the same. Therefore, leading to people slowly going broke and not being able to afford most things.