And yet, the USD/SDG exchange rate is stuck at 55 since Feburary (and I also felt my share of price hikes when that happened). Doesn't inflation also cause exchange rates to increase, in an inflationary way?
What?
Head explode.
Ask your grandfather, or if you still have one, one of your great grandparents how much was a loaf of bread during the time when they were teenagers.
Wait for the answer.
That's inflation.
It is really that simple, some people want to do some complex formulas in order to try to tell what has been inflation during a period of time, but the truth is you only need to look for a person that has lived for a very long time and ask him if he remembers the price of a product back then and you will know your answer.
Inflation is not complex, it happens because of an increase in the money supply and governments have tried to make it seem as if this is a good thing in low amounts, but the problem is that they can never maintain those low amounts and then we have rampant inflation, people cannot afford the services and products that they did before and the economy finally collapses.