Donald Trump used a package of Tic Tacs as a visual example of inflation in a public speech to “translate” inflation into vernacular language in one go.
Inflation represents a general increase in the prices of goods and services in an economy over a certain period of time. In other words, inflation means that with the same amount of money today, we can buy less than before, because the value of money gradually declines.
It is important to emphasize that inflation does not refer to an increase in the price of a single product, but rather to a broader rise in prices, such as food, energy, fuel, rent, transportation, and other essential living costs.
Inflation is most often measured through the Consumer Price Index (CPI), which shows how the prices of goods and services typically used by an average household change over time.