Inflation
The rate at which prices rise and money's purchasing power falls over time.
Inflation measures how much more the same basket of goods and services costs over time. A dollar today buys less than a dollar bought ten years ago, even if the number in your account hasn't changed. This is why long-term financial planning cares about "real" (inflation-adjusted) returns, not just the nominal number on a statement.
Worked Example
At 3% average annual inflation, something costing $100 today costs about $134 in 10 years — not because it changed, but because money's purchasing power shrank.
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