What is 'inflation'? Definition & meaning

More terms

Account balance

The amount of money a user has stored in a financial repository.

Time Value of Money

The concept that money you have now is more valuable than the same sum in the future.

UK Treasury bill

A debt instrument issued by the UK government with a maturity of less than one year.

Income statement

A summary of a company's income and expenses over a set period of time.

Coupon

Also called a dividend, this is the fixed annual interest paid to gilt holders. It’s usually paid in two equal, semi-annual instalments and expressed as a percentage of the nominal value of the gilt.

Hedge Fund

Investment funds that are often associated with riskier and shorter-term trading strategies.

Maturity date

The date on which a gilt is redeemed and the gilt holder receives the repayment of the nominal amount and final dividend or coupon payment.

Exchange-Traded Fund (ETF)

A collection of investments, pooled into a single fund that can be bought and sold on a stock exchange.

Conventional gilts

Gilts where the dividends and principal repayments are fixed in nominal terms. This is as opposed to an index-linked gilt where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI).

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Inflation