All about Inflation
Inflation is the price increase of general goods in a certain market. When inflation goes up the price of goods and services goes up so in effect you are paying a higher amount for the same product. Inflation is measured by taking a typical basket of goods that a family needs to survive and comparing it to an identical basket of goods every month. Each item in the virtual basket is given a different weight depending on the necessity of that good. For example gasoline will have a higher value than beer for instance since gasoline is more important in sustaining life than beer.