Understanding Inflation
Learn about inflation, its causes, and how it affects your purchasing power.
What is Inflation?
Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.
Causes of Inflation
- Demand-Pull Inflation
- Cost-Push Inflation
- Built-In Inflation
Effects of Inflation
- Decreased Purchasing Power
- Increased Cost of Living
- Erosion of Savings
- Impact on Investments
Protecting Your Finances from Inflation
- Invest in Assets That Outpace Inflation
- Reduce Debt
- Increase Income
- Adjust Your Budget
Conclusion
Understanding inflation is crucial for making informed financial decisions. By taking steps to protect your finances, you can mitigate the negative effects of inflation and maintain your purchasing power.