Inflationary Risk


DEFINITION of 'Inflationary Risk'

The uncertainty over the future real value (after inflation) of your investment.


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BREAKING DOWN '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.

  1. Inflation

    The rate at which the general level of prices for goods and services ...
  2. Treasury Inflation Protected Securities ...

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  3. Consumer Price Index - CPI

    A measure that examines the weighted average of prices of a basket ...
  4. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise ...
  5. Federal Reserve Board - FRB

    The governing body of the Federal Reserve System. The seven members ...
  6. Inflationary Psychology

    A state of mind that leads consumers to spend more quickly in ...
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