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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....


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 ...


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

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