Money · RATIOXA GLOSSARY

Inflation

Rise in the general price level, reducing what the same amount of money can buy.

01

Simple definition

Rise in the general price level, reducing what the same amount of money can buy.

02

Why it matters

This term changes how inputs, cash flows or results should be interpreted. RATIOXA keeps it explicit so two options are compared on the same basis.

03

Worked example

2% inflation reduces €1,000 purchasing power after ten years to about €820 in today’s terms.