What is inflation?
Inflation is the rate at which prices rise, which means the same money buys less over time.
If inflation is 5% a year, something that costs 100 today costs about 105 next year. Money that earns less interest than the inflation rate is losing buying power, even though the number in your account goes up.
Example
Inflation calculator
With 10% inflation for 7 years, prices roughly double, so your money buys about half as much.
General information only, not financial advice.