Inflation
–
Inflation occurs when the
level of prices for goods
and services are rising.
When inflation rate is on
the rise, buying power is
diminishing because you
have to have more money in
order to buy the same goods
or services that you use
customarily.
When inflation is on the
rise, the buying power of
consumers diminishes and as
a result will slow the
economy down and that will
have a direct impact in the
equity market.