【正确答案】正确答案： Inflation refers to a situation where something costs more today than it used to. Inflation seems far away form our daily life. However, inflation does affect our daily life. To begin with, inflation usually hurts our buying power. That's because rising prices means we have to pay more for the same goods and services. When inflation is high, the prices at the store are going to go up faster. Inflation can help us if we are the lucky recipient of income inflation. However, if our income increases at a slower rate than general inflation, our buying power declines even if we are making more. Furthermore, inflation means our savings accounts actually lose money. If our savings account has a lower rate than the rate of inflation, our money is actually becoming less valuable over time. So for the average person's wallet, inflation is generally a bad thing.