yesterday i went to the fun fair with my dad it was very fun and i learned something new let me tell you all about it we arrived at the fun fair and my favorite treat just appeared like magic right in front of me i scream i immediately put on my best convincing voice and said to my dad
please dad said okay but just a small one dad went to pay he looked a bit shocked how much that has risen in price he shook his head and paid the money then i saw my favorite game and decided that my convincing voice had to reappear dad rolled his eyes but i knew he couldn’t resist a
convincing voice how much i want a teddy it was definitely my lucky day it was about to get luckier as i had spotted a balloon cellar please dad looked at his wallet it was almost empty but luckily the balloon seller said why accept all my decretic cards sir of course you do that exclaimed dad was
a bit annoyed he didn’t have any money left then he said a very strange thing i think your balloon isn’t the only thing that’s unfloated i was puzzled what do you mean dad dad said well when your balloon gets blown up it is inflated it gets bigger and bigger when the price of
items get bigger or increased this is called Inflation 2. i asked what sort of things and dad told me everything food toys clothes bikes you name it and the price of things change over time i didn’t know that that sounds bad i said to that he said sometimes it is it can mean
that things get more expensive and it’s harder for some people to buy them it’s bad for those who can’t buy and for those people who produce things so if you make cars and the price of cars go up not many people will be able to buy your car oh no i exclaimed so you lose your money
dad said not really your money loses value and the same amount of money will buy you less if Inflation is seven percent your money would be worth seven percent less than it was before for example mom has a set budget to spend on grocery shopping every week but if some items go up
in price she will get less items for her budget i wondered why it happened that explained that there were a few reasons why it can be because more people want to buy things which can lead to businesses having a limited amount of sale i thought hmm like when we were trying to buy my bike dad said
yes i remember we had to try a few different types of bikes as the companies have risen their prices i remember one of the bikes you liked only had 10 available and 100 people wanted them then the price increased as the business knew they could get more money i asked but does that mean only those
people who have more money can afford it dad said yes that’s right he also said that the cost of making things can increase because the materials to make them may have also risen in cost he gave me an example my dad loves to tell a story example think of a loaf of bread the price might rise
because the flour to make it is more expensive the gas to bake the bread and the fuel to transport the bread to the shops may have risen too ah now i understood but i had to ask the question if the price of items are inflating there’s only one thing that hasn’t my dad said what’s
that and i replied my pocket money you
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