Inflation is a broad increase in prices of goods and services.
Inflation reduces the value of currency over time.
Prices of products we spend more on are given greater weight in measuring inflation.
Different households have different spending habits.
Average spending habits of all households determine weight of products and services in measuring inflation.
All goods and services consumed by households are taken into account for measuring inflation.
Everyday items, durable goods, and services are included in measuring inflation.
Inflation means you can buy less for the same amount of money.
Inflation affects the value of currency.
Inflation is measured by the average increase in prices of goods and services.

Test your knowledge on inflation with our quiz! Learn about how inflation affects the value of currency, how it's measured, and what products and services are taken into account. Discover the impact of inflation on everyday items, durable goods, and services. Find out why different households have different spending habits and how they affect the measurement of inflation. Take the quiz now to see how much you know about this important economic concept!