What is inflation and how does it affect purchasing power?

In this tutorial, we explain what is meant by "inflation" in an economy with a practical example. We also discuss how high rates of inflation can hurt purchasing power and the actions central banks can take to tackle inflation. You might also find our lesson on the links between inflation, real returns, and nominal returns helpful: https://www.initialreturn.com/real-return-vs-nominal-return/ For more tutorials on finance and investing, check out our YouTube channel: https://www.youtube.com/@initialreturn #tutorial #economics #investing