A currency (peso, dollar, euro etc.) buys less as inflation eats away at its value.
The Rule of 72
To figure out how fast your money is losing its value, you can use the rule of 72. Just divide 72 by the current inflation rate to find the number of years it will take prices to double.
72/Current inflation rate = Number of years until prices are doubled
72/12% = 6 years until a kilo of rice will double
Example: Current price of Rice/kg (2008) = 38.00 Pesos
After 6 years, (Year 2014) the price/kg of rice will be = 76.00 Pesos
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