NEWS ¢ $ $ $ In 1970 a dozen eggs cost about 60 A men’s haircut was about 5 Fifty years later a dozen eggs cost closer to 2 50 The price of the haircut rose to more than 25 When prices go up over time it’s called inflation Then money can’t buy as much as it did before Rising Prices Inflation affects both goods and services Goods are things you buy such as food Services are things you pay someone to do for you Getting a haircut is a service 4
NEWS When costs rise how do people still pay for things During times of inflation a company might sell something at a higher price Then they make more money Over time the company may pay its workers higher This gives those people more money to buy things In 2000 the wage was 14 per hour In 2020 it was 24 per hour This increase helped wages people keep up with rising prices average 6
