Here is definition of what it is in economics according to Wikipedia. Inflation is a rise in the general level of prices of goods and services in an economy over a period of time. When the price level rises, each unit of currency buys fewer services and goods. Consequently, annual inflation is also an erosion in the purchasing power of money. It is loss of real value in the internal medium of exchange and unit of account in the economy. A chief measure of price inflation is the inflation rate. It is the annualized percentage change in a general price index (normally the Consumer Price Index) over time.
Weapon against Inflation
In my opinion, the only way to deal with it is to divert our funds into the investment world. I only recommend you this inflation killer weapon because of two factors. Investment instruments are secure and liquid.
Investment world is something which is totally unpredictable with certainty. Although it can be predicted through various approaches of knowledge. There is definitely something in the investment that can “kill the inflation” that erodes the value of your money. So what are you waiting for?
But before investing, it’s better for you to test drive your insurance first. So you can stay safe with your saving. Equip your weapon with third party protection like life insurance.
There are forms of investments that are considered more aggressive than others. The stock price changes tend to be more rapidly than gold. Stock market investment is a category of high risk high return, so you have to be more careful for these instruments. The development of the stock price is also very promising.
Pure gold is a relatively safe form of investment because its price tends to rise although slowly (within months). Please note the gold price movement over the past five years in goldprice.org. The development of the gold price is very promising for investors in this sector.in