Interactive infographic

How Inflation Shrinks What Your Money Buys

Move the sliders to see how inflation lowers the buying power of cash each year, and what a savings rate has to beat to keep up.

By Brifana TeamPublished Oct 24, 2026

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<p>Infographic by <a href="https://brifana.com/infographics/inflation-purchasing-power/">Brifana</a></p>

What this infographic shows

Inflation is a hidden cost on cash. When prices rise 3.7% in a year, the same shopping costs $103.70 instead of $100. Money that does not grow loses that much buying power, and the loss compounds every year.

The chart shows what your money is worth in today’s prices:

Indigo: the buying power you still have.
Coral: the buying power inflation has taken.

How to use it

Set how much cash you hold.
Set inflation. It starts at 3.7%, the U.S. rate for the 12 months to September 2026.
Raise the savings rate until the coral disappears. That is the return you need just to stand still.

Why the number matters now

Inflation has run above the Federal Reserve’s 2% goal for more than five years, and it rose again in September 2026, mostly because of gasoline. That is why the Fed raised interest rates in September. See how interest rates change your loan payment, or how compound interest works in your favour.

This is an educational illustration, not financial advice. Real inflation changes from year to year.

Frequently asked questions

What is purchasing power?

It is how much your money can actually buy. When prices rise and your money does not grow as fast, each dollar buys less, so your purchasing power falls.

What is the current U.S. inflation rate?

The Consumer Price Index rose 3.7% in the 12 months to September 2026, according to the U.S. Bureau of Labor Statistics. Core inflation, which leaves out food and energy, was 2.6%.

How do I protect my savings from inflation?

Earn a return at least as high as inflation. Compare your savings rate with the latest inflation figure; if it is lower, your money is losing buying power every year.

What is the difference between headline and core inflation?

Headline inflation includes everything in the price index. Core inflation leaves out food and energy, whose prices swing a lot, so it shows the underlying trend more clearly.

Sources

Text version of this infographic