Short answer
Inflation means prices for everyday things — food, fuel, rent — go up over time. When inflation is 3%, something that cost €100 last year costs €103 today.
Lesson · 2 min read · Estonia edition
What is inflation?
Written in plain English for readers in Estonia.
Why it matters
Inflation eats your savings if your money isn't growing faster than prices. It's also the main reason central banks raise or cut interest rates.
A note for readers in Estonia
This lesson explains a global concept — the same idea applies to markets watched from Estonia as anywhere else. Local rules, accounts, taxes and product availability vary and change over time, so we deliberately don't cover them here.
Educational content only — not tax, legal or investment advice. Always confirm current rules with a qualified professional in Estonia.
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Same lesson, other markets
Educational content — not financial advice.