When I reached out to my friend Christopher Clarke with your question, he said, “That’s so cool that a kid is asking about inflation!” I agree.
Clarke is an economics professor at Washington State University. He told me inflation is the average rise in prices for goods and services.
So, what are goods and services? Let’s say you go to a restaurant and order enchiladas. The enchiladas are goods. You can see them, touch them and taste them. Services are the other parts of your dining experience. The people who take your order, cook your food and wash your dishes are all providing services.
The price you pay for goods and services changes over time.Read More ...