What is inflation?

What is inflation?

Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power.

How does inflation affect my savings?

When inflation rises, the purchasing power of your savings decreases, meaning you can buy less with the same amount of money.

What causes inflation?

Inflation can be caused by various factors, including demand-pull inflation, cost-push inflation, and built-in inflation.

Is inflation always bad?

Not necessarily. Moderate inflation can indicate a growing economy, but high inflation can lead to economic instability.

How can I protect my savings from inflation?

You can consider investing in assets that typically outpace inflation, like stocks, real estate, or inflation-protected securities.