FinLexicon Term Details

Inflation

Every long-term plan should consider whether returns can beat inflation after tax.

Category: Investment Basics Difficulty: Beginner 1 min read Sample Term

Definition

Inflation is the rise in prices over time, reducing the purchasing power of money.

Case Study

A college goal that costs Rs. 10 lakh today may cost much more ten years later.

Historical Reference

Inflation has shaped savings behavior across economies whenever prices rose faster than income.

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