Inflation We all know that inflation in simple terms means 'a general rise in prices'. When prices of goods and services are on average rising, inflation is positive. Note that this does not mean that all prices are rising, or that they are all rising at the same rate. In fact, if enough prices fall, the average may fall too, resulting in negative inflation, which is also known as deflation. At the extreme, inflation can turn into hyper-inflation. When inflation starts to rise at rates of 100%, 1,000% or 10,000%, people rush to spend money before it becomes worthless. Risks associated with Inflation Inflation is considered as a big risk to your money. When the supply remains relatively constant and the financial demand goes up, then we see prices go up and call this as an inflation. But when we talk about recent COVID-19 economic shutdown, there has been a massive drop in demand because of the shutdown which has led the whole world to a situation called def...