178. What is Inflation? (English Vocabulary Lesson)
Thinking in English
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How to Calculate Inflation
Inflation is a general rise in the level of prices across the economy. If inflation this year is 10%, that means your money is worth 10% less than it was last year. Economists give greater importance or weight to things that people spend more money on as well. For example, increases in the average price of electricity are considered more important than an increase in the price of sugar. The exact process of determining inflation is different around the world but they often based on something called a consumer price index.
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