The Negative Side of Inflation

1. Reduced Purchasing Power

Inflation erodes the real value of money, causing consumers to buy fewer goods and services with the same amount of currency.

2. Uncertainty

High or unpredictable inflation can create uncertainty, disrupting economic planning and investment.

3. Challenges for Fixed-Income Earners

Those on fixed incomes, such as retirees, may struggle to maintain their standard of living as purchasing power decreases.