How Does Inflation Affect Interest Rates?

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The term "inflation" has been all over the news lately — and it won't be the last time we hear it either. Even though it's a fairly common term, what, exactly, does "inflation" mean? And how does it relate to interest rates? 

Here, we'll break down the meaning of both terms and explain the ways they tend to go hand in hand. For those who want a quick primer on economics, we'll also cover the causes and effects of inflation when it comes to the economy at large.