New answers tagged

1

The answer would depend on the equities held. Some can weather inflation better than others (such as companies that have solid dividend growth) and even outpace inflation. Some industries are also safer against inflation than others, such as consumer staples and utilities since people usually have to purchase these regardless of how much $ they have. In ...


4

The relation between inflation and stock (or economic) performance is not well-understood. Decades ago, economists thought inflation corresponded with periods of high growth and good real returns, but since then we have had periods of low inflation and high growth and high inflation with low growth. It is generally understood among current economists that ...


0

I would give both numbers. You use the COLA to say that the government thinks that people on Social Security deserve that much of raise. Compare the percentage increase of your raise to that. "Our 5% raise is better than the 0% raise that the government is giving to Social Security recipients." You use the CPI to adjust last year's salary to compare with ...


4

The Consumer Price Index (CPI) is generally the the inflation number used in headlines. It's a rough estimation of the decrease of the value of a dollar related to certain consumer items. A cost of living adjustment (COLA) is applied to a structured payment in order to mitigate the effects of inflation. This structured payment could be salary, or annuity ...



Top 50 recent answers are included