Question 1

What is inflation?

Accepted Answer

Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling. For example, if the inflation rate is 2%, then a $1 pack of gum will cost $1.02 in a year.

Question 2

What is purchasing power?

Accepted Answer

Purchasing power is the value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. Inflation decreases purchasing power over time. This calculator shows you how much the buying power of your money changes.

Question 3

What is the Consumer Price Index (CPI)?

Accepted Answer

The Consumer Price Index (CPI) is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care. It is a primary way to measure inflation.

Inflation Calculator

Inflation Calculator

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