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The two percent inflation rate is a target pursued by many central banks. This value is considered appropriate to ensure stable price development without affecting the economy. Too low inflation can lead to deflation and a decrease in economic growth, while too high inflation weakens purchasing power and leads to uncertainty. An inflation rate of 2% is considered a “Goldilocks” rate, not too hot or too cold, but “just right.”
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.
Download our app and start gaining insight into your current and future finances.
Horizon65 for iPhone
Horizon65 for Android