Why inflation matters for your money
Inflation is the general rise in prices over time. At 3% a year, prices double in about 24 years. Cash under the mattress loses that buying power, which is why long-term savings usually need to earn more than inflation: through high-yield savings, Treasury I-bonds and TIPS, or stocks over the long run.
The Federal Reserve aims for 2% inflation a year. See today's reading and its history on our rates page.