A producer of goods or provider of services makes their goods and services more expansive if people are willing to pay for it or they will lower the price if they cant sell what they expected. But why is that a sign of inflation and what makes the units of money I own worth less?
I hope someone can point me to a beginner friendly source where I can learn about this. I am getting bits and pieces here but I cant create a bigger picture.
The real sign of inflation is when the amount of money that you used to be able to eat everyday for a whole month, but now that amount of money is no longer enough to eat everyday for a whole month because there is a spike in the price of food that you often consume or food that is often consumed by many people. This means that to get a picture of inflation you have to look at the prices of basic goods that you often buy in the past with the prices of those basic goods today so that you will get a little understanding of it.I hope someone can point me to a beginner friendly source where I can learn about this. I am getting bits and pieces here but I cant create a bigger picture.