Why there is inflation?

Inflation occurs when there is a sustained increase in the general price level of goods and services in an economy over time. There are many factors that can contribute to inflation, including an increase in the money supply, an increase in demand for goods and services, or a decrease in the supply of goods and services. Additionally, changes in government policies, such as fiscal or monetary policies, can also impact inflation rates. Inflation can have a number of effects on an economy, including reducing purchasing power, increasing the cost of borrowing, and distorting economic decision-making.

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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