(Dominique invested $25,000 in fixed-rate GICs and $25,000 in bond segregated funds.

Both GICs and bonds are subject toinflation risk, meaning that if inflation rises faster than the returns generated by these fixed-income investments, the real value (purchasing power) of the investments decreases over time.

Exact Extract:

"Inflation risk refers to the possibility that the return on an investment will not keep up with the rate of inflation, eroding the real value of investment returns. Fixed-income investments like GICs and bonds are particularly susceptible to this risk."

(Reference:Segfunds-E313-2020-12-7ED, Chapter 1.4.3 Inflation Risk​)