Inflation affects your investment. The gradual increase in the cost of goods and services erodes the purchasing power of your money over time. While inflation is a normal economic phenomenon, it can significantly affect your investments if not properly managed. Understanding how inflation works and what investment strategies can help protect your portfolio is crucial for long-term financial stability. Let's explore how inflation impacts investments and strategies you can use to safeguard your portfolio. inflation explained What is Inflation? Inflation refers to the rate at which the general level of prices for goods and services rises over time, reducing the purchasing power of money. For example, if inflation is 3%, then something that costs $100 today will cost $103 next year. While inflation is a natural part of economic growth, it can notably impact investments. How to calculate the inflation Rate: Inflation Rate = ((Y-X)/X) x 100 In the formula, X would be the starting co...