In 1908, Milton Hershey began selling one of the first mass-produced chocolates in the United States - the Hershey bar! The price was 2 cents, and the average American earned $574 a year.7 Today, that same candy bar costs more than $1 - a 4,900% rise in price.8 This increase overtime is called inflation. But what causes it? Inflation happens for a variety of reasons, including market power, demand, and supply. Market power occurs when a company or group control most (or all) of one particular resource. They can then set the price that they want, as long as people are still willing to pay it. When a lot of people want something, the increased demand raises prices. We see supply-related price increases when a product people want becomes less available. This inflation in prices causes money to lose value over time.