Inflation

The term «inflation» refers to a general price increase or devaluation of money. Inflation occurs when the prices of consumer goods increase steadily – as opposed to deflation, in which prices steadily decrease.

Because prices go up, money is worth less because it buys consumers less goods and services. In other words: Goods become more expensive.

A difference is made between mild or “creeping” inflation (0 to 5 percent devaluation per year) and severe inflation (more than 5 percent devaluation per year). Hyper-inflation refers to rapid devaluation of money in a short time-frame.

During times of sever inflation, investors turn to tangible assets such as real estate, commodities, precious metals or stocks to protect their wealth. Inflation-protected securities, like those issued by many states, are another investment option.

See also: Deflation

More on this topic:
Inflation calculator
Compare trading fees in Switzerland
Stock trading tips

Online trading brokers in comparison

Find the cheapest online broker now

Compare now
Trading platforms

Brokers with low fees

Swiss Trading Platform

Swissquote

  • Leading Swiss online bank with FINMA license

  • Free multicurrency account & low commissions

  • Access to more than 3 million products (shares, ETFs, crypto and more)

Swiss Trading Platform

Cornèrtrader Special Offer

  • Special offer: particularly favorable conditions for Moneyland users

  • No custody account fees for shares

  • Swiss online bank with FINMA license

Swiss Broker

Saxo Bank Special Offer

  • Special offer: Reimbursement of brokerage fees up to CHF 200 for 90 days

  • Licensed Swiss bank (FINMA)

  • Free expert research and trading signals

Deal of the Day
×
Swiss Trading Platform

Swissquote

Leading Swiss online bank with FINMA license

Wealth managers in comparison

Find the most favorable wealth management now

Compare now for free
Expert Benjamin Manz
Benjamin Manz is CEO of moneyland.ch and an independent expert on banking and finance.