€1,000 in a drawer is not still €1,000.
Prices rise, for example 2% a year. The ECB aims for 2% over the medium term.
After 10 years at 2%, your €1,000 buys what about €820 buys today.
The same basket that costs €1,000 now costs about €1,220.
The number on the note stays the same. What it buys does not.
Where does your money wait, and what does it earn there?
Education, not investment advice.
Read the sheet as text
Title: What Inflation Does to €1,000
Highlight: Inflation
Subtitle: Prices rise, so the same euros buy less.
Frame title: Your €1,000 at 2% Inflation a Year, for Example
Part 1: Today. buys €1,000 of things. €1,000.
Part 2: In 10 Years. buys what €820 buys today. €820.
Part 3: In 20 Years. buys what €670 buys today. €670.
Example: Or Said Another Way. €1,000 → €1,220 what costs €1,000 today costs about €1,220 in 10 years.
Note: 2% is the ECB target. Real inflation changes from year to year.
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