inflation risk
Currency devaluation danger
Inflation risk is the possibility that rising prices will erode the purchasing power of money or investments over time.
A bond paying fixed interest loses real value if inflation outpaces its returns: Retirees on fixed incomes face significant inflation risk.
The term appears frequently in financial planning and investment discussions, where it's weighed against other risks like market volatility.
- purchasing powerEconomic spending ability
- sticker shockDistress from unexpected expense
- bread and butterPrimary source of income
- devaluationLowering of currency worth
- currencyMedium of exchange
hedge · bonds · treasury · TIPS · erosion · wage stagnation · savings · nest egg · rainy day fund · prices · rising costs · Federal Reserve · central bank · interest rates · monetary policy · stagflation · hyperinflation · portfolio
inflation, risk, inflate, inflated, inflating, inflator, deflate, deflation, deflationary