Understanding Inflation: How It Erodes Your Purchasing Power Over Time
Published: 2025-05-15 · 7 min read
Inflation silently erodes your savings every year. Learn how CPI works, see historical inflation data, and calculate exactly how much purchasing power you've lost over time.
What Is Inflation?
Inflation is the rate at which the general level of prices for goods and services rises, causing purchasing power to fall. When inflation is 3%, something that costs $100 today will cost $103 next year.
Key Inflation Metrics
| Metric | Description | Used By |
|--------|-------------|---------|
| CPI Consumer Price Index | Measures average price changes for urban consumers | US BLS, most countries |
| HICP | Harmonised Index of Consumer Prices | Eurozone Eurostat |
| RPI |...
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