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The Best Places to Invest During Inflation: 4 Ways to Stay Ahead of the Curve

What is Inflation? Inflation is a general rise in the price of goods and services. It’s measured as either a percentage change in a given amount of time, or as an absolute amount change over time. Inflation is considered a negative effect on an economy because it erodes the purchasing power of the dollar. When inflation is high, your dollars don’t go as far. You might need $5 today to buy a gallon of milk, but in a few months you could be looking at $6 or $7 for the same amount. Inflation can be caused by a variety of factors, including changes in supply and demand, monetary policy, interest rates, and government fiscal policy.