What is the annual inflation rate?

The annual inflation rate is a measure of the rate at which the general level of prices for goods and services is increasing over a one-year period. It is typically calculated by comparing the average price level in the current year to the average price level in the previous year, and expressing the difference as a percentage. The annual inflation rate is an important economic indicator, as it can impact consumer purchasing power, investment decisions, and government policy. The specific annual inflation rate can vary depending on factors such as changes in the money supply, supply and demand for goods and services, and the overall health of the 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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