A Visual Guide to Inflation

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Inflation. It’s bad right? When prices rise your money is worth less and nobody wants to see their hard earned cash decline in value. But what is inflation anyway and what are its root causes? Turns out the situation is not as straightforward as it first appears. In this first of a two-part series we take a look at inflation and examine the pros and cons of this important barometer of the health of the US economy. Stay tuned for part two next week where we look at inflation’s alter ego, deflation. We look forward to your feedback and comments below.

For more personal finance visualizations see: WallStats.com