## What is Inflation? Why Do Investors Need to Understand It
If you notice that the money in your wallet buys fewer goods than before, you are experiencing **inflation**, an economic phenomenon where the prices of goods and services tend to rise continuously. In other words, inflation is a decrease in the value of money, requiring more money to purchase the same items.
### Clear Example
Mr. A has 50 baht, which can buy several bowls of rice. But after one year, rice prices have increased, and Mr. A can only buy one bowl with his original money. Going back 10 years, a bowl of rice might have co
View OriginalIf you notice that the money in your wallet buys fewer goods than before, you are experiencing **inflation**, an economic phenomenon where the prices of goods and services tend to rise continuously. In other words, inflation is a decrease in the value of money, requiring more money to purchase the same items.
### Clear Example
Mr. A has 50 baht, which can buy several bowls of rice. But after one year, rice prices have increased, and Mr. A can only buy one bowl with his original money. Going back 10 years, a bowl of rice might have co