InsiderFlow › Glossary › What is inflation?
Inflation is the generalized rise in prices: every year the same money buys a little less.
3% inflation means what costs $100 today will cost $103 in a year. Central banks usually target 2% a year: enough to lubricate the economy, not enough to erode it. The 2021–2023 period reminded the world what happens when it escapes control, with peaks above 10% in Europe.
For investors, inflation is the invisible enemy: cash sitting in an account loses purchasing power every year. Historically stocks and real estate have protected better than cash and fixed-rate bonds.
On InsiderFlow these concepts come alive on real data: what big funds and insiders are buying, explained every day.
No one directly: it emerges from demand, supply, wages, energy. Central banks influence it by raising or lowering interest rates.
With real assets: stocks, global ETFs, real estate, and inflation-linked bonds.