Term
Inflation
A general rise in prices over time, which means the same money buys less. Measured with a basket of typical household spending.
In pesos: With 5% inflation, what cost $100 MXN this year costs about $105 next year; your $100 bill did not change, its power did.
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.