ELI5: inflation
// explanation
What is inflation?
Inflation is when the prices of toys, food, and things you buy get more expensive over time [2][4]. It's like if your favorite candy bar cost $1 last year, but costs $1.10 this year—that's inflation happening.
Why does it happen?
Inflation happens when there's more money chasing the same amount of stuff, or when it costs more to make things [4]. If everyone has more allowance but there's still only the same number of video games in the store, stores raise the price.
What does it feel like?
When inflation happens, your allowance doesn't buy as much as it used to [2]. You might be able to buy 10 pieces of candy with $10 one year, but only 9 pieces the next year because prices went up.
How do you measure it?
People measure inflation by picking a basket of common items like bread, milk, and toys, then checking how much the whole basket costs each year [2][4]. In the US, inflation was 3.8% in April 2026, meaning things cost about 3.8% more than they did a year before [3].
// sources
Inflation measures how much more expensive a set of goods and services has become over a certain period, usually a year.
The annual inflation rate in the US accelerated to 3.8% in April 2026, the highest since May 2023, and compared to 3.3% in March.
Aug 22, 2025 ... Inflation is the increase in the prices of goods and services over time. Inflation cannot be measured by an increase in the cost of one product or service.
1860D–14B. 42 USC. 1395w–114b. MANUFACTURER REBATE FOR CERTAIN DRUGS WITH PRICES INCREASING FASTER THAN INFLATION. “( ...
Video by Johnny Harris
Video by Primate Economics
Video by The Guardian
