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inflationary risk

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Financial Dictionary

Inflationary Risk

The uncertainty over the future real value (after inflation) of your investment.

Investopedia Commentary

This is the risk that inflation will undermine the performance of your investment.

Looking at results without taking into account inflation is the nominal return. The value you should care about is the growth of your purchasing power, referred to as the real return.

Related Links

All about Inflation Tutorial
Inflation-Protected Securities - the Missing Link
Why the CPI Is a Friend to Investors
Curbing The Effects Of Inflation
The Forgotten Problem Of Inflation

See also: CPI, Deflation, Disinflation, Fed, Hyperinflation, Inflation, Inflationary Psychology, PPI, Real Return, Reflation, RPI, Stagflation, Stagnation, Treasury Inflation Protected Securities (TIPS)

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