Inflation is the gradual rise in the cost of goods and services that can cause a decrease in purchasing power. Making financial selections must take inflation into account because it devalues money. Investors must make sure that the growth of their investments is exceeding inflation. A excellent technique is to invest in assets that offer a solid hedge against inflation, such as stocks, real estate, and commodities. On the other side, inflation may have a negative effect on bond investments. In order to ensure that investments maintain their value over time, inflation should be a fundamental factor in investment planning.
The role of inflation in investment planning
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