During World War II, you could buy a loaf of bread for 10 to 15 cents, a new car for less than $1,000, and an average house for around $5,000. In the 21st century, bread, cars, houses, and just about everything else cost more. A lot more. Clearly, we've experienced a significant amount of inflation over the last 60 years.

When inflation surged to double-digit levels in the mid- to late-1970s, Americans declared it Public Enemy Number One. Since then, public anxiety has abated along with inflation itself. But people remain fearful of inflation, even at the minimal levels we've seen over the past few years. Although it's common knowledge that prices go up over time, the general population doesn't understand the forces behind inflation.

What causes inflation? How does it affect your standard of living? This tutorial will shed some light on these questions and consider other aspects of inflation.

Next: 1. What is Inflation?