Understanding Inflation, Part 1: Are Concerns About Inflation Overinflated?
July 30, 2021
Since the stock market has been doing pretty well lately, I suppose we’ve had to find something else to worry about. For many investors, that “something” is inflation.
Recent headlines have suggested it may be time to brace for higher inflation, or the rate at which your cash is losing its purchasing power over time. The Consumer Price Index (CPI) is our general measure of rising or falling prices, which in turn drives inflation rates up or down. Lately, the CPI has been on the rise. But before you read too much into the news, here are a few things to remember: