6 things to know about Inflation
By: Dalton Hill and Brennen Hicks
Number ONE
Inflation is the general rise in prices of goods and services, when products become more expensive. Its measured in Consumer Price Index (CPI). Every year the the measure the price difference of 100 things and use the difference between last year and this year
Number TWO
Deflation is the opposite of inflation and it is when the general prices go down
Number THREE
How is inflation caused? Well it can be caused by demand being higher than supply, when the federal reserve prints to much money, wages cannot catch up the the rising prices
Number FOUR
The highest inflation in the U.S was from 1916-1920
The next spike was in 1979-1982
Number FIVE
The highest deflation was during the great depression where it dropped 25% as well as during 1921-1922
Number SIX
How does deflation affect you? Deflation decreases the level of prices but also means the wages go down.