Glossary - Inflation
Description
The rate at which the general level of prices for goods and services rises, leading to a decrease in purchasing power of money over time. Central banks (e.g. the Bank of England, Federal Reserve) often set monetary policies to keep inflation within target ranges. For investors, inflation can erode real returns if their investments do not grow faster than prices.
Alternate Names
- Price inflation
- Purchasing power erosion
- Cost-of-living increase
- General price level increase
- Price level rise
- Consumer price inflation
