What is money inflation?

Money inflation is a sustained increase in the general price level of goods and services in an economy over a period of time. When prices rise, each unit of currency buys fewer goods and services; consequently, inflation reflects a reduction in the purchasing power of money. A related concept is cost-push inflation, which occurs when an increase in the cost of production leads to a higher general price level.

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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