Inflation simply means that the cost of goods and services rises over time. One popular measure of inflation is the Consumer Price Index (CPI). This measurement of inflation is stated as a yearly percentage and, according to the Department of Labor, has averaged approximately 5.4% from 1965 through 1994. For example, a loaf of bread costing $1.00 today would cost $1.05 a year from now. In 20 years, that same loaf of bread would cost about $2.86, assuming that inflation continues to average 5.4%. In other words, the same amount will not go as far in the future as it does today.