Inflation reduces the value of your money; it is the phenomenon of too much money chasing a few goods. As prices of products and services rise in an economy, it reduces the consumers’ power to buy. The effect of inflation on investment is two-pronged. One, it eats into your savings, and second, inflation reduces your real returns on investment if the returns are not adjusted for price rise. To enable screen reader support, press Ctrl+Alt+Z To learn about keyboard shortcuts, press Ctrl+slash