Inflation Risk

Posted in Finance, Accounting and Economics Terms, Total Reads: 781

Definition: Inflation Risk

Inflation risk is defined as the risk of value of assets or investments decreasing in the long run due to decreasing purchasing power and value of currency of the nation.

An important point to note is that inflation risk is not a speculation as to there will be inflation, instead it is a speculation if the inflation will occur at a higher rate than expected.

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