Inflation

What Is Inflation?

Inflation is the decrease in the purchasing power of your money over time. When inflation rises, each dollar buys fewer goods and services.

How It Affects You

If you keep $10,000 under your mattress for 20 years and inflation averages 3%, that $10,000 will only have the buying power of about $5,500 today. Investing is the only way to stay ahead.

Common Measures

• CPI (Consumer Price Index): tracks a basket of goods
• Core Inflation: excludes food and energy prices

The Chart

The graph above shows U.S. inflation rates from 2020 to 2024. Notice the sharp spike in 2022 – that’s why your grocery bill felt so much higher.

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Last verified: July 2026