Inflation

Inflation is a term we often hear, but many struggle to explain what it actually means and how it impacts personal finance. In simple terms, inflation refers to the general rise in prices over time, which reduces the purchasing power of money. This means that over time, the same amount of money buys fewer goods and services.  

When inflation rises, the purchasing power of money falls. This creates an important question for savers: is it still smart to keep money in a traditional savings or deposit account?