The easiest way to define and understand inflation is to think of it as a decline in purchasing power due to the increase in prices over time. Basically, it’s the gradual decline in the value of money. This happens for a variety of reasons, including an increase in production costs and an increase in demand. Both lead to an increase in prices, which is inflation.
Example: If we’re using “the gradual decline in the value of money” as the definition of inflation here, then it helps to think of the price of certain food products like bread and milk as an example. The average price of movie tickets have also increased over the years due to inflation, which is a response to either demand for those goods and services, or a response to the increase in wages (with an increase in wages, people can now pay more for those services, and workers at the theatre also need to be compensated according to the increase in wages).

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