# Inflation Risk

*Risk & Portfolio — Finicade finance glossary*

Inflation risk is the chance that rising prices erode the real value of your money or your fixed income stream. It's the reason a nominally safe asset can be a guaranteed loss: cash yielding 2% against 5% inflation loses 3% a year with certainty. Long-dated fixed coupons are the most exposed, index-linked bonds and, over long horizons, equities and property offer partial defences.

**Also known as:** purchasing power risk, erosion risk

**Related terms:** [Inflation](https://finicade.com/glossary/inflation), [Purchasing Power](https://finicade.com/glossary/purchasing-power), [TIPS (Treasury Inflation-Protected Securities)](https://finicade.com/glossary/tips), [Real Return](https://finicade.com/glossary/real-return), [Real vs Nominal](https://finicade.com/glossary/real-vs-nominal-interest-rates)

Source: https://finicade.com/glossary/inflation-risk