What is Inflation?

A child visits a fun fair with their dad, enjoying treats and games. The dad explains inflation using real-life examples, highlighting how prices increase over time due to demand and production costs. The child learns about the impact of inflation on purchasing power and the economy.

How does inflation affect the purchasing power of money?

What reasons did the dad give for why prices can increase?

What example did the dad use to explain how the cost of making things can rise?