Economics, Cost of Living, Money, Finance Samuel Butcher Economics, Cost of Living, Money, Finance Samuel Butcher

ELI5 Inflation

Imagine you have one dollar. You go to a small shop. Yesterday, that one dollar could buy you one cookie. You were happy. Today, you go back to the same shop. The cookie is still the same size. Nothing about it changed. But now the cookie costs two dollars. Your one dollar is not enough anymore. That is inflation, and this is how it affects your day to day life:

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