Inflation is a sustained increase in the general price level of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation reflects a reduction in the purchasing power per unit of money a loss of real value in the medium of exchange and unit of account within the economy. A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index (normally the consumer price index) over time.
There are many ways to protect your money from inflation. One way is to invest in assets that are likely to appreciate in value during inflationary periods. For example, real estate and commodities have historically performed well during periods of inflation. Another way to protect your money from inflation is to save in a currency that is likely to appreciate in value relative to other currencies. For example, the Swiss franc and the Japanese yen have historically been considered safe haven currencies during periods of global economic uncertainty.
