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Basics

Inflation

The general rise in prices over time, which erodes the purchasing power of money.

Under inflation the same amount buys less as time passes. For an investor it means your real return is the nominal return minus inflation — holding cash quietly loses value.

ExampleAt 5% inflation, the purchasing power of 100 leva falls to about 61 leva over 10 years.

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Educational content, not investment advice.