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In an economy, prices for goods and services can change at any time. Some prices rise while others fall. The increase in the prices of goods as a whole but not only of some single products is referred to as "inflation".

As a result of inflation, you can buy less for one euro or in other words: One euro is worth less than before.

"Rate of inflation", as measured by the consumer price index, means the percentage change over the corresponding period of the previous year – either the month a year earlier or the average of the previous year.

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