Inflation

Inflation refers to the general increase in the price levels of goods and services over time, which reduces the purchasing power of money. It means that a dollar today will not buy as much as it did in the past. Inflation is influenced by factors such as supply and demand, production costs, and government policies. While moderate inflation is a sign of a growing economy, high inflation can erode savings and make everyday living more expensive. Managing inflation’s impact is key to long-term financial planning, particularly for retirement savings and investments.