The default Inflation Rate, found in preferences, is used to inflate expenses and the future purchase price of properties.
This default setting may be overridden for any expense individually, in the expenses screens, by adjusting the inflation rate in Advanced Settings > Inflation.
The Inflation Rate preference is also used to inflate the future purchase price of new properties, when they are acquired in the future. This default setting may be overridden for any individual property in the plan by adjusting the relevant values in Advanced Settings > Details.
Importantly, the default inflation rate is also applied whenever the “Present Value” option is selected on any of the software's Advanced Settings > Growth, Details or Inflation panels. The inflation rate is used to compute the future value of any monetary amount found in the Step Up/Down detailed sections throughout the plan input screens.
Plan Preferences vs. System Preferences
Changes to this setting on the mirror Default Inflation / Growth Rates panel in System Preferences, on the left side of the screen, will be used only going forward, as you create new client cases. System Preferences are used as a template only for new client cases. Changes to System Preferences will not retroactively affect your existing client cases.
If you want to change this preference in any existing client cases, you will need to open and edit them individually, in each case's Plan Preferences.