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Inflation, which is a sustained increase in the general price level of goods and services in an economy over a period of time, can affect economic growth in both positive and negative ways. On one hand, moderate inflation can stimulate economic growth by encouraging spending and investment. On the other hand, high inflation can impede economic growth by causing uncertainty and reducing purchasing power. Additionally, high inflation can lead to higher interest rates, which can make it more difficult for businesses and consumers to borrow money and invest in the economy. Overall, the relationship between inflation and economic growth is complex and can vary depending on the specific economic conditions and policies in place.
The effects of inflation are often not directly felt but are played out over a long time, especially long-term investments are vulnerable to inflation.
At Horizon65, we created a mobile app that enabled you to check the effect of inflation on your savings.