Inflation causes prices of goods and services to increase. Consumers can purchase fewer goods per dollar, input prices go up and revenues and profits go down. If economic growth accelerates very rapidly, demand grows even faster, and producers raise prices continually. In all, this action, slows down the economy so that supply & demand can recoup and become stable again. So, we understand on a base level what this does to our pocketbook but what does it mean for our savings and investments.