Investing at the real rate is better
Price increases, or inflation, may be thought of as the gradual loss of buying power. The average price rise of a selection of products and services over time can serve as a proxy for the pace at which buying power declines. A unit of currency essentially buys less as a result of the increase in pricing, which is sometimes stated as a percentage. Deflation, which happens when prices fall and buying power rises, can be compared to inflation. The rate at which the cost of goods and services increases is known as inflation. Demand-pull inflation, cost-push inflation, and built-in inflation are the three categories into which inflation is frequently divided.
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