Glossary

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

Mortgage Servicing Ratio (MSR)

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Lifestyle Inflation

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Money Market Fund

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Debt Consolidation

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