Inflation. By.. Brent, Bob, Vikrant & Leslie. What is Inflation?.
By.. Brent, Bob, Vikrant & Leslie
Example: For example, if the inflation rate is 2% annually, then technically a $1 pack chocolate bar will cost $1.02 in a year. After inflation, your dollar can't buy the same goods that it could buy before.
Example: Items that are in the CPI shopping basket like medicines and TV's may improve a great deal in quality yet, their prices may actually not even rise. In fact they could even decrease so even while the standard of living may grow because of the increased quality, this might not be reflected in the CPI.