Inflation erodes purchasing power from "summary" of Principles of Economics by Saifedean Ammous
When prices rise, people's money can buy less. A currency unit that buys fewer goods and services over time is said to have declining purchasing power. This decrease in purchasing power is what economists refer to as inflation. Inflation effectively erodes the value of money held by individuals and reduces their ability to buy things. This phenomenon is particularly harmful to people who rely on fixed incomes or savings. For example, retirees living on a fixed pension may find that their purchasing power diminishes as prices increase due to inflation. Similarly, individuals who save money in a bank account or other interest-bearing asset may see the real value of their...
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