The period of time that you buy a CD or make another investment. For CDs, the most common deposit terms are three, six and 12 months. If you sell your CD before its maturity date, the institution that sold it to you is likely to charge you a penalty for redeeming the CD before maturity. Several states, including Washington, Alaska, and Wyoming, do not levy income taxes. A general increase in prices that you pay for goods and services.
Inflation is stated at a yearly rate.
For example, a four percent inflation rate means prices have risen four percent in the last 12 months, or will rise four percent in the next 12 months, depending on whether you are discussing the actual inflation rate or expected inflation rate. Inflation cuts into the value of your savings and investments. As prices rise, a dollar of your savings buys less. Two major price indexes that measure inflation are updated every month by the U.S. Department of Labor. As monthly indicators of inflation, these show the percentage change in prices over the previous month.