Inflation means that prices of things we buy are generally going up over time. This means our money can buy less than before. For example, if a candy bar used to cost $1 and now it costs $1.50, that's inflation. Inflation is measured using special indexes that track price changes. It can happen when there is more demand for goods or when it costs more to make them. Some inflation is normal, but too much or unpredictable inflation can cause problems for people and businesses. To control inflation, governments and central banks use policies to manage prices and keep them stable.

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