For consumers, inflation refers to higher prices on goods and services and the risk of losing purchasing power if their income fails to increase
Conversely, a decline in prices is called deflation.
Continuing deflation can increase unemployment and undermine the financial system and the broader economy
making it harder to pay off debt.The U.S. The Federal Reserve is targeting an average inflation rate of 2% over timeas it is in line with its dual mandate to improve price stability and maximize employment.
Sharp deviations from the moderate inflation rate in both directions pose challenges to investors and consumers.
Because they have the potential for significant economic downturn. They also have different and often unpredictable effects on different property classes.