Tag Archives: Consumer Price Index

Exactly what is inflation, and how do we measure it? It is very important to investors, savers, and people in general, that we understand.

Costs of living rise and fall differently in different areas. Do you think that prices in Beverly Hills, CA change the same as prices in Gary, IN? Of course not! The Chapwood Index reports the unadjusted actual cost and price fluctuation of the top 500 items on which Americans spend their after-tax dollars in the 50 largest cities in the nation.

While gold has traditionally been seen as a tactical way to help preserve wealth during market corrections, times of geopolitical stress or persistent dollar weakness, we think there is a case to be made for gold as a core diversifying asset with a long-term strategic role in multi-asset portfolios...as gold’s historically low or negative correlation with most other asset classes argues in its favor...This article looks at how gold-backed assets have behaved over time as a portfolio diversifier, tail risk hedge and inflation hedge.

The Fed has been trying to increase inflation, operating at the macro level, but what does inflation mean at the micro level — specifically to your household? Let's do some analysis of the Consumer Price Index, the best-known measure of inflation.

Inflation lurks in the shadows. It destroys value by gradually eroding real returns over time. It is financial death by a thousand cuts. Investors too often look at "the numbers" in their portfolio without asking what those numbers can actually buy over time. It's a classic mistake that John Maynard Keynes termed "money illusion."

Don’t be afraid of inflation. It is already here and there is nothing we can do about it. The effects will soon be obvious to all. Just make sure you are among those who are protected and prepared to profit.

Whenever the BLS posts their monthly CPI there's always the same response from critics that the index is flawed. That's fine. I think a healthy dose of skepticism regarding government data is perfectly good. So let's take a look at some independent gauges to see where prices are.

A look at the trend in prices of the Big Mac clearly shows that investors are being penalized with higher inflation, lower income from bonds and certificates of deposit and being led to believe that the economy is growing better than it really is. [Let me explain.] Words: 1012; Charts: 2

The July 2011 Consumer Price Index for Urban Consumers (CPI-U) released yesterday puts the June year-over-year inflation rate at 1.66%, which is less than half the 3.82% average since the end of the Second World War. That being said the ShadowStats Alternate annualized rate of inflation is 9.26%. [Which is more accurate?] Words: 384

The July 2011 Consumer Price Index for Urban Consumers (CPI-U) released yesterday puts the June year-over-year inflation rate at 1.66%, which is less than half the 3.82% average since the end of the Second World War. That being said the ShadowStats Alternate annualized rate of inflation is 9.26%. [Which is more accurate?] Words: 384