What impact does a rise in consumer prices generally have on the value of money?

When consumer prices rise, commonly referred to as inflation, the purchasing power of money decreases. This means that each unit of currency buys fewer goods and services than it did before the price increase. For example, if the price of a basket of goods rises from $100 to $110, a consumer would need to spend more money to purchase the same items, indicating that money is less valuable in terms of what it can buy.

As inflation continues, consumers find themselves needing to allocate more of their income to maintain their standard of living, which can erode savings and lower overall economic well-being if wages do not adjust similarly. Thus, the relationship between rising consumer prices and the value of money is primarily negative with respect to purchasing power.