Inflation Adjustment

Inflation adjustment is a way to account for changes in the purchasing power of money over time. As prices for goods and services rise, the same amount of money can buy less. To compare amounts from different periods fairly, financial figures—like salaries, pensions, or costs—are adjusted to reflect current prices. This ensures that comparisons show real value rather than just nominal numbers, making it easier to understand true economic changes or to set fair standards across different time periods.