Prices rising, so the same money buys less than before
Inflation is a sustained rise in the general level of prices. The same note buys less, so cash left alone loses value in real terms. Companies raise prices and see sales grow, but their materials and wages cost more too. Central banks move interest rates to keep it from running away.
At 2% a year, $10,000 today is worth about $8,200 in real terms after 10 years.
For learning, not investment advice. Decisions are your own.
StockFit · TrueNorthLabs Inc.