Inflation is the decline of purchasing power of a given currency over time. A quantitative estimate of the rate at which the decline in purchasing power occurs can be reflected in the increase of an average price level of a basket of selected goods and services in an economy over some period of time such as the (CPI) Consumer Price Index. Inflation is not that things cost more but Rather your money has lost value relative to goods and services in that economy!!! Money is how you store your production and value for use at a later date and a way to exchange that value for goods and services.
