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The inflation rate affects business by influencing the value of money. A high inflation rate means that money loses value and thus costs for companies increase, which can negatively affect their profits. A low inflation rate, on the other hand, can help to reduce costs for companies and increase their profits. It is important to note that the inflation rate is not the only factor that affects business and other factors such as the economic situation and competition also play a role.
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.
Horizon65 for iPhone
Horizon65 for Android