Why £100 buys less every year
A meal deal was £3 not long ago. Why does everything creep up?
The simple version
Inflation is prices rising over time. If prices go up 3% a year and your money earns nothing, your cash quietly buys 3% less each year.
What your cash would feel like in the future.
Feels like
£74
Spending power lost
26%
Real-world example
£1,000 left in a 0% current account for 10 years at 3% inflation buys what about £744 buys today.
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Key takeaway
Cash that sits still shrinks. Keep a buffer in savings that pays interest, and invest long-term money.
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