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What Is Inflation?

Definition and plain-English explanation of "Inflation"

Inflation — Basics illustration

Inflation is the rate at which the general level of prices for goods and services rises over time, eroding the purchasing power of money. Moderate inflation (around 2%) is normal and healthy. High inflation hurts savers and bondholders, while investing in stocks, real estate, and other real assets is a common way to outpace it.

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