Inflationary Risk

What Does Inflationary Risk Mean?
The uncertainty over the future real value (after inflation) of your investment.

Investopedia explains Inflationary Risk
This is the risk that inflation will undermine the performance of your investment.

Looking at results without taking into account inflation is the nominal return. The value you should care about is the growth of your purchasing power, referred to as the real return.

Filed Under: Economics

Related Terms

Consumer Price Index - CPI
Deflation
Disinflation
Fed
Hyperinflation
Inflation
Inflationary Psychology
Producer Price Index - PPI
Real Return
Reflation
RPI
Stagflation
Stagnation
Treasury Inflation Protected Securities (TIPS)
More Related Terms

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