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Inflation

Meaning: 

Inflation refers to the rise in prices of goods and services over time, which leads to  a decrease in the purchasing power of money.


Why Inflation Is Important:
It impacts the cost of living, meaning people need more money to buy the same things.
It influences how much people earn from their savings and investments.


How to understand inflation:

Higher inflation means your money can buy fewer goods and services.
It affects salary increases and how businesses decide on pricing for their products.


Uses of Inflation:
Inflation is important for price setting, making decisions about interest rates, planning investments, creating budgets, and adjusting salaries.







 

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