---
title: What's Inflation?
description: Inflation is the rate of change in the prices you pay for everything in your life.
authors:
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      - Housing
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published: '2015-06-09T10:30:43.000Z'
modified: '2015-06-09T10:30:43.000Z'
section: Economy and Politics
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![Woman unloads shopping bag illustrating inflation](https://img.money.com/2015/06/150608_em_inflation_1.png)

In this Money 101 Explainer, editor Pat Regnier walks through how inflation, the rate of change in the prices you pay for everything in your life, is calculated. He also explains why you might feel that inflation is worse than the government tells you it is, and why a big jump in housing prices might not be a sign of inflation. Also covered are how taxes and Social Security benefits can be linked to inflation, and why the Federal Reserve pays close attention to it.

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