Term
Inflation expectations
What people and companies believe prices will do next year. If everyone expects 6%, they raise prices and wages to match, which makes it happen. Central banks watch this closely.
In pesos: If your landlord expects 6% inflation, the rent renewal comes with a 6% bump before anything actually rose.
Where to go deeper
3/4 5 min Read What inflation is, and how it hits you Why the same money buys less over time, how a raise can still be a pay cut, and what central banks are actually doing when they raise rates.More terms on the same topic
Educational content only: not financial, investment or tax advice. The numbers are examples to understand the idea, not a forecast or a recommendation.