6 things to know about Inflation

By: Dalton Hill and Brennen Hicks

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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.