Economics2 min read
InflationGerman: Inflation
Inflation is a sustained rise in the general price level. The same amount of money buys less on average.
In plain language
Price indices measure changes in a weighted basket. Your personal experience can differ because you buy different things. Falling inflation means prices rise more slowly, not necessarily that they fall.
Let’s make it concrete
An illustrative basket costs €100 today and €103 a year later. The price increase is 3%.
Simplified example for illustration.Worth understanding
The price increase of one product is not the overall inflation rate. An average does not match every household exactly.
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For further learning and reference:
Financial education for orientation. No individual investment, tax or legal advice.
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