Inflation
DEFINITION
Inflation is the general rise in prices and the decrease in the purchasing power of money over time. This means the same amount of money buys less than it used to because goods and services become more expensive.
ELI5
If a snack used to cost $1.50 and later costs more, your money does not go as far as before. That is inflation.
Other related terms
Bond Funds
Learn more
Recession
Learn more
LIBOR
Learn more
Activities of Daily Living (ADLs)
Learn more