Inflation Rate
The percentage at which the price of goods and services is rising, which directly reduces your purchasing power.
Frequently Asked Questions
How is the inflation rate measured?
Usually via the Consumer Price Index (CPI), which tracks the average price change of a basket of goods over time.
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Nominal Return
The amount of money generated by an investment before factoring in expenses such as taxes, investment fees, and inflation.
Purchasing Power
The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy.
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