What Is Inflation?

Inflation explained at A1 level

Inflation means prices go up. When there is inflation, you pay more money for the same things.

For example: last year, bread cost €1. This year, bread costs €1.

20. This is inflation.

Inflation can be 2%, 5%, or more. In Spain, inflation is now 3.

3%. This means things cost 3.

3% more than last year. Inflation is not always bad.

A little inflation is normal. But too much inflation is a problem.

Why? Because your salary does not always go up with prices.

If prices go up 10% but your salary does not change, you can buy less food and clothes. Right now, inflation in Europe is higher because of the war in the Middle East.

Energy is very expensive. When energy is expensive, everything else is also expensive.