Meaning & Definition
Inflation means a general rise in the prices of goods and services over time. When inflation increases, the value of money goes down, which means you can buy fewer items with the same amount of money. Inflation is a normal part of an economy, but very high inflation can reduce purchasing power.
How Inflation Affects You
- Daily expenses become costlier
- Savings lose value over time
- Interest rates may increase
- Cost of living rises
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