Inflation adjustment

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As for inflation , a process is known which compensates for the loss in value caused by inflation.

If inflation is to be completely offset, compensation must be made in the full amount of inflation. However, the majority of contracts do not provide for inflation adjustment. Inflation plays a decisive role, particularly in the case of very long-term contracts, some of which run for decades. A current rate of 1000 euros after 20 years with 3% inflation brings in only 553 euros after adjusting for purchasing power.

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