Recent economic talk has been centred on two words that has the same first two letters: inflation and interest. These two phrases have a not-so-favourable connotation to a third word with the same said first two letters that you and me are familiar with: investing. What About Inflation And Interest? Inflation, as we know it, is the increase in prices and decline of the value of money. Grown at a steady pace, inflation is healthy as it is associated with economic growth. Too much inflation over a given time, however, leads to hyperinflation and this causes prices to rise unchecked and hastened the decline of monetary value. Interest rates are one of the main tools used by governments and central banks to control the rate of inflation. A rise in interest rates will incentivize people to keep more cash as opposed to spending it since there is an...