Economy Explained: What Is Inflation and What Does It Mean When It Goes Up or Down? GOBankingRates 3/18/2021 © garagestock / Shutterstock.com Inflation In 1970, a cup of coffee cost around 25 cents. Today, that 25-cent cup of joe would actually cost around $1.70. The coffee didn’t get any better. The price was driven up by the relentless pressure of inflation, which nibbles away at the purchasing power of currency while causing prices to rise over time. If you feel like a buck doesn’t go as far as it used to, it’s not your imagination. It’s inflation. Popular Searches Inflation ...