What do you mean by inflation and deflation?

Inflation and deflation are two economic terms used to describe the movement of prices in an economy. Inflation is the rate at which the general level of prices for goods and services is increasing, while deflation is the opposite – a decrease in the general level of prices for goods and services. In other words, inflation means that the purchasing power of money is decreasing over time, while deflation means that it is increasing. Both inflation and deflation can have significant impacts on an economy and are closely monitored by economists and policymakers.

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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