Eli5 how does inflation work?

Question

I don’t quite get it, I understand its related to change in prices over time, by does it occur at a steady rate or is it dependent on external factors?

In: Economics

Answer 1

1. Cost of goods to make a product go up. If I sell hamburgers and the cost of beef goes up (or rent, labor, stoves, etc), the cost of my hamburgers go up, then I raise my prices. Inflation.
2. A little bit more complicated. I sell my burgers for $5. Everyone around is wealthy. I raise my prices to $6. Inflation.