Inflation

Inflation happens when the prices of goods and services increase over time, making money less valuable. As a result, people need more money to buy the same things they could afford. While a bit of inflation is normal, if prices rise too quickly, it can make life harder for people, especially those with low incomes. However, inflation isn’t just about how much money people earn. It also affects people’s ability to protect their money from losing value. Many people try to avoid the effects of inflation by moving their money into savings accounts, investments, or other financial tools that lose value more slowly than cash.