Inflation and the index
Inflation means that prices rise on average, so the same money buys less. The index measures that rise, and in Belgium most wages follow it.
Why
Your grandparents say a portion of chips used to be much cheaper. Is that true, and what does it mean for the money in your piggy bank?
Most prices go up a little every year. A loaf of bread, a bus pass, a cinema ticket: what costs €3.00 today will probably cost more in ten years.
That has consequences. Money sitting quietly in a piggy bank can buy a little less each year. And your parents wonder whether their wages keep up with prices. That is why it helps to know how inflation works.
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