Inflation Calculation Results
Understanding Inflation
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. It's measured as an annual percentage increase.
How Inflation Affects You
• Reduces purchasing power over time
• Erodes savings value
• Increases cost of living
• Impacts retirement planning
• Affects investment returns
• Influences interest rates
Protecting Against Inflation
• Invest in inflation-protected securities
• Consider real estate investments
• Invest in stocks and mutual funds
• Diversify your portfolio
• Consider commodities
• Maintain emergency funds