Talari JagadeeshKnowledge Contributor
How does inflation affect purchasing power and savings?
How does inflation affect purchasing power and savings?
Sign Up to our social questions and Answers Engine to ask questions, answer people’s questions, and connect with other people.
Login to our social questions & Answers Engine to ask questions answer people’s questions & connect with other people.
Lost your password? Please enter your email address. You will receive a link and will create a new password via email.
Please briefly explain why you feel this question should be reported.
Please briefly explain why you feel this answer should be reported.
Please briefly explain why you feel this user should be reported.
Questions | Answers | Discussions | Knowledge sharing | Communities & more.
Inflation reduces the purchasing power of money over time, meaning that each dollar buys fewer goods and services. For savings, this means that the real value of saved money decreases unless the interest earned on savings exceeds the inflation rate. Inflation can erode investment returns, making it important to invest in assets that have the potential to outpace inflation.