Why Should I Care About Inflation?

Inflation is a sustained increase in the general price of goods and services in an economy. In other words, inflation reflects a decrease in the purchasing power of money.

We've covered the main causes of inflation, the effect it has on your wallet, and how you can protect yourself. Keep reading...

Main Causes of Inflation

1) Too Much Money Chasing Too Few Goods When there is more money in the economy than goods and services available for purchase, prices will increase as people compete for limited resources.

2) Import Prices Increasing When the cost of imported goods and services increases, this can lead to inflation as businesses pass on these higher costs to consumers.

EFFECTS of Inflation

1) It Reduces the Value of Money 2) It Leads to an Increase in Interest Rate 3) It Increases Unemployment

SWIPE UP ...to read how you can protect yourself from inflation.