Finanças · Glossário

What is Inflation?

Definição rápida

The rate at which the general level of prices for goods and services rises, eroding purchasing power. Measured by CPI.

Explicação completa

Inflation is the percentage increase in the price level of goods and services over time. The Consumer Price Index (CPI) is the most common measure. At 3% annual inflation, $100 today buys $97 of goods next year, $94 the year after. Central banks (the Federal Reserve, ECB) target ~2% inflation as the sweet spot for economic growth without eroding savings too quickly. Inflation is a hidden tax on cash holders but a boost to borrowers (debts are repaid in cheaper future dollars). Real return on investments = nominal return − inflation. A 7% stock return with 3% inflation is a 4% real return.

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Calculators that use or explain Inflation.

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Last reviewed: June 15, 2026 • Category: Finanças