Sure, I can help explain inflation in a way that a 12-year-old can understand!

Inflation is a term used to describe the general increase in the prices of goods and services over time. It means that the same amount of money will buy you less than it did before.

Let's say you have a dollar that you can use to buy a candy bar today. But if inflation occurs, next year that same candy bar might cost $1.10. That's because the price of the candy bar went up, and the value of the dollar went down.

Inflation can happen for many different reasons. Sometimes it's because there is a shortage of something, like when there's a drought that makes it hard to grow crops, so food becomes more expensive. Other times, it's because there's too much money in circulation, which can happen when a government prints too much money.

Historically, there have been many examples of inflation. One well-known example is in Germany after World War I. At that time, the German government printed a lot of money to pay for the war, which caused prices to rise very quickly. People had to carry around wheelbarrows full of money just to buy basic things like bread. This is an extreme example, but it shows how inflation can affect everyday life.
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