The glossary

Inflation

Inflation is the rate at which the general level of prices for goods and services rises over time, reducing the purchasing power of money. From the Latin inflare (to blow into), the term captures the idea of currency “expanding” while the value behind it thins out. National statistical offices measure inflation using a basket of representative consumer goods (in Switzerland, the Federal Statistical Office publishes the Consumer Price Index monthly). Persistent inflation erodes the real value of cash savings, which is why long-term wealth strategies typically combine deposits at interest-bearing savings accounts with diversified investments designed to keep pace with — or outpace — rising prices.

Last verified: May 2026