One price rises
A specific product or service became more expensive.
Money Basics
Inflation is a broad rise in prices over time. It reduces what the same number of dollars can buy.
Money 101 • 08
When prices rise broadly over time, the same amount of money buys fewer goods and services.
The CPI tracks changes in the price of a basket of goods and services purchased by consumers.
A specific product or service became more expensive.
Prices are rising more broadly across the economy.
Some prices may rise faster, some slower, and some may fall.
Remember this
Inflation connects the number in the account with its real-world purchasing power.
Lesson complete