Savings and inflation: measure purchasing power
A growing balance does not always mean greater purchasing power. Compare returns, inflation and fees over the same period.
Bifinances educational guide · Updated 29 October 2026
Nominal and real returns
A nominal return describes how your money balance changes. A real return adjusts for rising prices. With a 5% annual return and 3% inflation, the exact calculation is 1.05 ÷ 1.03 − 1, approximately 1.94%, before fees and taxes.
A basket example
A CFA100,000 basket costs CFA103,000 after a 3% price increase. Savings rising to CFA105,000 buy slightly more of it. Your own basket can move differently from the national index depending on housing, food and transport costs.
Separate forecasts from earned returns
An advertised rate may be promotional, variable or conditional. Forecast inflation has not yet occurred. Check the period, access to funds and fees; explore several scenarios rather than treating one outcome as certain.
Educational information, not a personalised recommendation. Numerical examples are fictional. Fees, taxes and rules depend on the country and product; confirm the applicable terms before committing money.
Compare purchasing powerEditorial responsibility
Editorial responsibility: Paul Arnaud DEGUENON, journalist and business development expert.