What is consumer inflation?

Consumer inflation, also known as consumer price inflation, refers to the rate at which the prices of goods and services purchased by households and individuals are increasing over time. It is typically measured using an index such as the Consumer Price Index (CPI), which tracks the changes in the prices of a basket of goods and services over time. Consumer inflation is an important economic indicator as it can affect the purchasing power of consumers, the profitability of businesses, and the overall health of the economy. High levels of consumer inflation can lead to a decrease in consumer spending and a reduction in economic growth, while low levels of consumer inflation can signal a sluggish economy.

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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