3 ms·
In short, yes. Inflation is an increase in the price level, and as such it only affects nominal prices, not relative prices. So the price of goods and service
by lottin 5y ago
In short, yes. Inflation is an increase in the price level, and as such it only affects nominal prices, not relative prices. So the price of goods and services in relation to the price of your work (i.e. your salary) remains constant. Nothing becomes more expensive/cheaper in real terms, as a result of inflation. Although in practice this isn't entirely true.