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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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