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What is inflation?

We will explain in simple words what inflation is and we will also give an example.

Inflation is an economic concept that we use to show the rise in prices of products and services.

Let's look at a small example:

In 2021 we bought the bread at 1 € and in 2022 we buy the bread a 1.10, this means that we have an increase in the price of the same product by 10%. This is called inflation on the 10% scale

Inflation is bad for our wallets because with the same money we buy fewer products.

If, for example, last year with 1000 € we bought 100 products, this year for 1000 € we will buy 900 products.

In short, inflation increases the prices of products and services and reduces the purchasing power of the citizen.


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What is inflation?

We will explain in simple words what inflation is and we will also give an example.

Inflation is an economic concept that we use to show the rise in prices of products and services.

Let's look at a small example:

In 2021 we bought the bread at 1 € and in 2022 we buy the bread a 1.10, this means that we have an increase in the price of the same product by 10%. This is called inflation on the 10% scale

Inflation is bad for our wallets because with the same money we buy fewer products.

If, for example, last year with 1000 € we bought 100 products, this year for 1000 € we will buy 900 products.

In short, inflation increases the prices of products and services and reduces the purchasing power of the citizen.

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