Inflation Calculator
Understanding Inflation
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power.
Key Concepts
- CPI: Consumer Price Index, the most common inflation measure
- Real vs Nominal: Adjusted vs unadjusted for inflation
- Hyperinflation: Extremely rapid inflation (50%+ per month)
💡 Tips
- Historical average inflation is about 3% per year
- Inflation erodes savings - invest to outpace it
- Fixed-rate loans benefit from inflation
- Consider inflation when planning retirement