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. Stagflation

    A condition of slow economic growth and relatively high unemployment ...
  2. Inflation

    The rate at which the general level of prices for goods and services ...
  3. Retail Prices Index - RPI

    One of the two main measures of consumer inflation produced by ...
  4. Stagnation

    A prolonged period of little or no growth in the economy. Economic ...
  5. Deflation

    A general decline in prices, often caused by a reduction in the ...
  6. Disinflation

    A slowing in the rate of price inflation. Disinflation is used ...
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