inflation risk

Definition

The possibility that the value of assets or income will decrease as inflation shrinks the purchasing power of a currency. Inflation causes money to decrease in value at some rate, and does so whether the money is invested or not.



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Related terms:

purchasing power risk, risk-free asset, risk, inflation hedge, riskless asset, whole life

'inflation risk' appears in the definitions of these other terms on BusinessDictionary.com:




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