Answer:
$1265.63
Explanation:
Inflation is a persistent rise in the general price levels
Types of inflation
1.	demand pull inflation – this occurs when demand exceeds supply. When demand exceeds supply, prices rise
2.	cost push inflation – this occurs when the cost of production increases. This leads to a reduction in supply. Higher prices are the resultant effect  
Loss in purchasing value = future value of the amount saved - amount saved
The formula for calculating future value:
FV = P (1 + r)^n
FV = Future value  
P = Present value  
R = interest rate  
N = number of years 
$25000 (1.025)² = $26.265.625
Amount lost = $26.265.625 - $25,000 = $1265.63