What is Inflation?
Updated October 24, 2026
Inflation is when prices rise over time, so the same money buys less.
If inflation is 3%, something costing $100 now costs about $103 next year.
Cash sitting still slowly loses buying power.
That's one reason people look at investing and income streams.
Example
Your weekly groceries cost $80 last year and $86 this year.
Questions people ask
How does inflation affect savings?
Savings lose value if they earn less than inflation.
Does inflation move forex?
Yes, it shapes central bank rate choices.
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