Definitions for "Inflation risk"
Keywords:  erode, shrinks, rise, risk, uncertainty
If the rate of inflation is higher than the rate of return on investments, money invested today will be worth less several years from now.
The possibility that the value of assets or income will decrease as inflation shrinks the purchasing power of a currency. see also risk, inflation hedge, purchasing power risk.
The possibility that increases in the cost of living will reduce or eliminate the returns on a particular investment.