Savings simulator: Is your money beating inflation?
Inflation is the general increase in prices over time and is measured through Consumer Price Index (CPI). To determine if your money is beating inflation, you need to calculate the rate of return on your investment compared to the prevailing rate of inflation. If your return is higher than the inflation rate, you are effectively beating inflation and your money is growing in value. If your return is lower than the inflation rate, then your money is not growing in value and you are effectively losing money.