Effects of Inflation

Inflation weakens the function of money as storage of value, because each unit of money is worth less with the passing of time.

The most immediate effects of inflation are the decreased purchasing power. Depreciation is especially hard on retired people with fixed incomes because their money buys a little less each month.

Inflation is when you pay fifteen dollars for the ten-dollar haircut you used to get for five dollars when you had hair. ~Sam Ewing

[S3VIDEO file=’M018-inflation.mp4′]

[wlm_firstname], give us some examples of inflation effect.