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Inflation

Meaning: 

Inflation is the increase in prices of goods and services over time, which reduces how much you can buy with your money.


Why Inflation Is Important:

It affects the cost of living, making things more expensive.
It can impact how much money you earn from savings and investments.


How to understand Inflation:

When inflation is high, your money buys less than before.
It can influence how much you are paid at work and how businesses set their prices.


Uses of Inflation:   

Inflation affects price setting, interest rate decisions, investment planning, budgeting, and salary adjustments.