What is considered a high inflation rate?

Typically, an inflation rate of 3% or higher is considered high, although this can vary depending on the specific circumstances of the economy. High inflation can have negative effects on an economy, such as reducing purchasing power and decreasing the value of savings. It can also lead to uncertainty and instability, making it difficult for businesses and households to plan for the future. In addition, high inflation can exacerbate income inequality, as those on fixed incomes may be hurt the most by rising prices. Central banks and governments typically use monetary and fiscal policies to try to control inflation and maintain price stability.

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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