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2

As an expansion on the correct answer: Consider a really boring economy. Nothing changes; wages and prices stay constant for years at a time. Every month the Consumer Price Index stays at 0%. Then, something catastrophic happens, say on July 31, 2000. A cheap local source for a vital resource runs out, and it must be obtained from a higher cost source....


8

According to the link you provided, these inflation numbers are the year-over-year inflation amounts for a given month. For example the February number of 7% means from February 2015 to February 2016 the annual inflation rate was 7%. It's difficult to nail down the impact of inflation at a micro level from month to month. You need to understand what's in ...


7

Treasury Inflation Protected Securities, or TIPS, offer returns that are indexed to inflation, as measured by the Consumer Price Index.



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