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Inflation

Inflation is the general rise in prices across an economy over time, which means each unit of money buys a little less than it used to. It's usually measured by tracking the cost of a typical "basket" of goods and services (like food, housing, and transportation) and seeing how that total cost changes year to year. A small, steady amount of inflation is normal, but very high or unpredictable inflation can make it hard for people to plan their spending and savings.