Inflation and Its Impact on Banking

• Definition:
  • Inflation refers to the rising cost of goods and services, reducing the purchasing power of money.
• Impact on Savings:
  • Inflation can erode the value of money if the interest earned on savings is lower than the inflation rate.
• Mitigation Strategies:
  • Invest in accounts or instruments that offer returns above the inflation rate, such as stocks or high-yield savings accounts.