WHAT IS INFLATION?

Inflation refers to a general rise in the level of prices. Its opposite is deflation, a general fall in the price level. More money will need to be paid for goods (like a loaf of bread) and services (like getting a haircut at the hairdresser's).

Who benefits from Inflation?

The saying, ‘Whenever there is massive chaos in the economy (like COVID-19), somebody gets rich” is true.

Investors investing in assets affected by inflation, if held on for a long time will certainly benefit from it. For example, an increase in housing prices might affect consumers. However, those who have already bought a house will benefit from capital appreciation.