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Purchasing Power

Shows how inflation erodes what a sum can buy over time.

Interactive inputs coming — use the formula and example below.

Rechenbeispiel

Cash loses value in real terms as prices rise.

So funktioniert's

  • Use the formula below with your own figures.

Die Formel

Future power = amount ÷ (1 + inflation)ⁿ.

Rechenbeispiel

Cash loses value in real terms as prices rise.

Häufige Fragen

Why hold less cash?

Inflation quietly erodes it.

What protects power?

Assets that grow at or above inflation.

Tipps

  • Compare money across years in real terms.
  • Hold assets that grow at or above inflation.
  • Cash quietly loses value when prices rise.

Begriffe

CPI
A price index for a basket of goods.
Real return
Return after inflation.
Purchasing power
What a sum can actually buy.