Question

How does inflation affect prices?

Answer 1

"a general increase in prices and fall in the purchasing value of money." Google definition of Inflation
Inflation is the steady increase of prices and when there is inflation the value of money decreases (I.E Gas used to cost *about* 1.03 in 1980, now today it costs *about* 2.00 for the same amount.) As more money is printed, the value decreases, and prices have to get higher to accompany continuous profit.

Answer 2

Inflation is when things basically cost more, but it's alright because people will generally have more money. Inflation allows people to spend their money for more carefully and will generally also give them more money and it's much better than deflation where money's inherent value increases but the price of goods decreases, so even though on paper it's cheaper (like if bread went from $3 to $2.50) it'd more than likely be more expensive because people would get paid less and there would be less money to purchase it with. But too much inflation isn't good because even though it gives people more money, and more to buy with it, hyperinflation will cause a situation like post WW2 Germany where the mark was basically worthless and you had to use stacks of it to buy anything.