Presented By
CPP Investments | Investissements RPC
What is inflation? Why do you need to know this definition? The MoneySense Glossary is your resource for learning and understanding financial terms.
Inflation is the rising cost of goods and services, a.k.a. the cost of living. Over time, inflation erodes the purchasing power of money—for example, items that cost $100 two decades ago will now run you $144.61. In Canada, the most widely used measure of inflation is the Consumer Price Index (CPI), a fixed basket of hundreds of different goods and services, including food, shelter, clothing, transportation, health care and recreation. Each month, Statistics Canada checks the prices of these goods and services to see how much they have changed.
Example: “When planning for retirement, consider how inflation can affect your savings.”
Share this article Share on Facebook Share on Twitter Share on Linkedin Share on Reddit Share on Email
Use a mortgage renewal calculator to figure out if...
Use a mortgage refinance calculator to understand the costs...
Use a mortgage default insurance calculator to figure out...
Use a land transfer tax calculator to determine how...
Use a mortgage payment calculator to understand what a...
A mortgage affordability calculator takes factors like your income,...
If you’re discouraged by the sky-high prices, hefty closing...
If you carry a balance, consider switching to one...
Sometimes, seniors must move out of their home. What...
These cards provide perks without an annual fee.