What Is Inflation?
Definition
Inflation: The rise in the general price level of goods and services, which lowers what the same money can buy.
Inflation is the rise in the general price level of goods and services. As prices rise, the same amount of money buys less, so its purchasing power falls. In Türkiye, official inflation is the yearly change in the consumer price index (CPI) that TÜİK publishes every month. The inflation calculator projects forward with one fixed rate you choose.
The effect on purchasing power
If inflation is 10% a year for five years, a basket that costs 1,000 today costs about 1,610.51, and 1,000 buys only about 620.92 worth of today’s goods. The calculation assumes the same rate every year.