Inflation

Investments

Inflation is the general increase in the price of goods or services in an economy over time. Goods and services tend to increase in price over time which effectively means the same amount of money is able to buy less of the same. However, deflation – where by the price of goods decreases – is also possible.

Inflation is often measured by the Consumer Price Index (CPI) which tracks the change in price of a basket of goods and services which a typical consumer would purchase.

Another form of inflation often discussed is wage inflation. This tracks the increase in wages in an economy over time.

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