Inflation
Inflation erodes the value of money, which can mean hardship for people on fixed incomes.   It is the persistent rise or fall over time in the average price of goods and services.

The inflation rate is expressed as a percentage increase in average prices over a year.  For example, if the cost of the Consumer Price Index (CPI) “basket” rises from $100 one year ago to $102 today, the current inflation rate is 2 percent.  When the CPI rises, the purchasing power of the average consumer’s dollar falls.

The costs of high and unstable inflation can be severe.  High and unstable inflation undermines the economy’s ability to generate long-lasting growth and job creation.  It creates uncertainty for consumers and investors and can lead to painful cycles of economic “boom and bust” that cause hardship for many North Americans.  High inflation erodes incomes and savings.  People on fixed incomes, including many elderly and poor North Americans are particularly vulnerable to inflation.