What Are the Different Ways Inflation Affects Investment?

Inflation and investment are those where the circulation of circulation exceeds the need for circulation, and inflation occurs. In the economic decision-making and economic analysis of investment, the issue of inflation must be considered. The result of inflation is the rise of the price index (the result of currency depreciation), and the rate of change of the rise, that is, the inflation rate. In the case of approximate analysis, the inflation rate can be regarded as a negative interest rate in the investment process. To analyze the economic benefits of an investment, generally consider the average annual inflation rate during the entire effective period of the investment, and subtract this inflation rate from the actual return on investment. ^[1]