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Why don’t you ask Ms. Davis about it? I am sure she will know.
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Great idea!
Good morning class! How was everyone’s weekend?
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My weekend was good!
Ms. Davis what is inflation and deflation? I heard about it on the news recently.
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That’s a great question and what today’s lesson is about. To begin, inflation is a general increase in prices for goods and services over time. In short, meaning your money buys than less than it used to.
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Meanwhile, deflation is the opposite and is a decrease in the general price level of goods and services, which this occurs when the inflation rate falls below 0%.
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Interesting…
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Next we will discuss consumer price index. CPI is the measure of the average change in the prices paid by consumers for a “basket” of goods. Essentially tracking inflation and the cost of living.
Finally it is important to remember price stability it’s important because it ensures money retains its value over time, allowing for informed decision when planning their spending and savings.
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I was watching the news the other day and heard the words inflation, deflation, insurer price index, and price stability and was soooo confused!

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