Is inflation good or bad?

Inflation can have both positive and negative effects on an economy. A moderate level of inflation can encourage spending, investment, and economic growth. However, high levels of inflation can lead to decreased purchasing power, reduced consumer confidence, and other negative economic consequences. Additionally, inflation can disproportionately impact those on fixed incomes, such as retirees or those with low-wage jobs. Ultimately, whether inflation is considered “good” or “bad” depends on a variety of economic factors and the specific context of the situation.

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.

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