Why 2 inflation target?

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.

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