Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling. Central banks attempt to limit inflation, and avoid deflation, to keep the economy running smoothly.

This calculator shows how inflation erodes the purchasing power of money over time. The results are based on the annual inflation rate you provide.

Example: With 3.5% annual inflation, $100 today will only have the purchasing power of about $70.89 in 10 years.