What is inflation?
5 cards · about a minute · 16 October 2026
- 1 of 5
Inflation means prices slowly rise over time.
- 2 of 5
$100 → $95
What $100 buys a year later at 5% inflation (example)
The same money buys a little less each year.
- 3 of 5
Coffee, rent and salaries all creep up together.
- 4 of 5
Most central banks aim to keep inflation low and steady, often around 2% a year.
- 5 of 5
For founders: set prices for next year, not just today.
Test yourself
Prices rise 5% this year. What happens to your $100?
- It buys a bit less
- It buys a bit more
- Nothing changes
Show the answer
It buys a bit less. Inflation means the same money buys a little less each year.
More in 60 seconds
A new 60-second explainer every weekday.
Join Younifyd, the network for founders and student founders: daily explainers, a weekly comic, and people to build with.
Join now