Inflation rates

Inflation rates measure how much prices for goods and services rise over time, reflecting the decrease in purchasing power of money. When inflation is high, each dollar buys fewer goods than before, which can impact savings and spending. Central banks may adjust interest rates to control inflation; for example, raising rates can help cool an overheated economy. Inflation affects everyone—higher rates can mean higher costs for essentials like food and gas, while lower rates can stimulate economic growth by making borrowing cheaper. Understanding inflation is crucial for making informed financial decisions.