Inflation
A sustained increase in the general price level of goods and services
Real World Example
During the High and Late Middle Ages, inflation became a significant issue as the demand for goods increased due to population growth and the expansion of trade. This period saw the introduction of more coinage, which sometimes led to a decrease in the metal content of coins, effectively devaluing them and causing prices to rise. Inflation was important because it affected everyone's purchasing power, from peasants to nobility, and could lead to social unrest if people couldn't afford basic necessities. Today, inflation still plays a crucial role in our economy, influencing everything from the price of groceries to housing costs. For example, if inflation causes bread prices to rise, a family might have to spend more of their budget on food, leaving less money for other essentials or savings.
