Inflation
Inflation is the rate at which the prices of goods and services increase over time.
1 min read Saving More Money
What it means
Inflation is the rate at which the prices of goods and services increase over time. As prices rise, the same amount of money buys less than it did before.
Example
If inflation is 3%, something that costs £100 today would cost around £103 a year later if prices rose evenly.
Why it matters
Inflation affects the spending power of your money and the value of your savings.
If your savings earn less interest than inflation, your money may lose spending power over time.
Is some inflation normal?
Yes. Low, stable inflation is a normal part of most economies.