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Inflation is a sustained increase in the general price level of goods and services in an economy over a period of time. When too much money is circulating in the economy and demand for goods and services exceeds supply, prices tend to rise. Inflation can also occur when there is an increase in production costs, such as an increase in the cost of raw materials or wages. Central banks use monetary policy to influence inflation by controlling the money supply and interest rates.
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.
Download our app and start gaining insight into your current and future finances.
