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  1. Home
  2. /Glossary
  3. /Inflation
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macro

Inflation

The rate at which prices rise and money loses purchasing power.

Definition

The rate at which prices rise and money loses purchasing power. Central banks target around 2% annual inflation. Higher inflation erodes savings, which is one argument for Bitcoin as an inflation hedge.

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Related Terms

Federal Reserve (Fed)

The central bank of the United States that sets monetary policy.

Interest Rates

The cost of borrowing money, set by central banks and market forces.

Basis Point

One hundredth of a percentage point (0.

CBDC (Central Bank Digital Currency)

A digital form of a country's official currency issued and controlled by its central bank.

Consumer Price Index (CPI)

A measure of average price changes for a basket of consumer goods and services.

Crypto Custody Regulation

Rules governing how institutions store and safeguard crypto assets on behalf of clients.

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