What does a low inflation rate mean?

A low inflation rate typically means that the general price level of goods and services in an economy is rising slowly. In other words, the rate at which prices are increasing over time is relatively low. This can be an indication of a stable economy, as it suggests that there is no significant pressure on prices due to high demand or supply shortages. However, extremely low inflation rates can also be a sign of sluggish economic growth or even deflation, which can have negative consequences for employment, investment, and overall economic health.

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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