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Inflation

What is inflation? Read this section, and you'll understand the causes of inflation and why it's not a threat in the near future. You'll be able to use terms like hyperinflation, stagflation, deflation and core inflation correctly at a cocktail party. Find out about both demand pull and cost push inflation, as well as how the government measures prices so it can manage inflation. See how inflation affects you, and how to protect yourself from it.

What Is Inflation?
Inflation is when prices of everyday goods and services rise. However, it's really not that simple. Inflation can attack different asset classes, such as gas or housing, without causing general inflation. This can harm the economy without triggering government inflation-fighting measures. Understand all the ramifications of inflation in this...

How Does Inflation Impact My Life?
Find out why most experts consider inflation to be the #1 threat to your financial well-being. Inflation can undermine your retirement planning, the value of your home, and your standard of living. Understand how inflation, in its many forms, impacts your financial well-being.

Current Inflation Rate
What is the current inflation rate? Find out what parts of the economy are experiencing inflation, and what part are not. Track the rate of inflation for each month since 2006.

U.S. Inflation Rate
The U.S. inflation rate measures how fast prices are changing.

Consumer Price Index
A description of what exactly is measured in the Consumer Price Index (CPI) and how it helps measure inflation in the US economy.

Personal Consumption Expenditures Price Index
The Personal Consumption Price Index (PCE Index) measures U.S. price changes each month. Find out how it's used to measure inflation and deflation, and the importance of the Core PCE.

Core Inflation Rate
Core inflation is the inflation measurement without volatile food and energy prices. Find out why it's used to help the Fed set monetary policy.

Inflation Rate Targeting
The Federal Reserve h as recently adopted an inflation rate target to manage inflation. If the prices in the core CPI are more than 2% higher than last year, the Fed may consider contractionary monetary policy to ward off inflation.

Types of Inflation
Learn about the different types of inflation, including hyperinflation, stagflation, and deflation, as well as inflation in different asset classes, such as food inflation, core inflation and asset inflation.

Asset Bubble
An asset bubble is a particularly nasty type of inflation. That's because it's often ignored by inflation fighters, such as the Federal Reserve. They are very seductive, because it seems absolutely everyone is making money from investing in that asset class! Find out how to detect asset bubbles, and an easy way to protect yourself from them.

Why Are Gas Prices So High?
Why do gas prices rise so dramatically each spring? Gas prices are driven by oil prices, but that's not all. Although gas prices aren't included in the core inflation rate, if gas prices stay high long enough, they can cause higher prices overall.

Why Are Food Prices Rising?
Why did food prices rise in 2011 and 2008? There were some temporary reasons, but also some long-term trends that will cause food price inflation in years to come.

What Can I Do to Protect Myself From Inflation?
Suggests several ways to protect your portfolio from inflation.

What Are Treasury Inflation Protected Securities?
Inflation will ultimately destroy the value of your investments, especially retirement planning. Understand how Treasury Inflation Protected Securities, or TIPS, can protect you from the effects of inflation.

What Are I Bonds?
How to use I Bonds to protect your investments from inflation. The advantages of I Bonds over regular Savings Bonds, and TIPS.

What Is Being Done to Control Inflation?
How is inflation prevented and managed? Find out the tools being used by the Federal Reserve to do just that.

Contractionary Monetary Policy
Find out the tools the Federal Reserve uses to implement contractionary monetary policy and control inflation.

Why Hasn't Inflation Been a Concern Until Now?
Learn the factors that cause inflation, what has kept them in check until now, and why they are rearing their ugly little heads again.

Greenspan and Bernanke on Inflation
How the current Fed Chair, Ben Bernanke, differs from the former Fed Chair, Alan Greenspan, in managing inflation.

What Is Deflation?
Deflation is the flip side of inflation, because it's when prices fall. This seems like a good thing, but it actually has a depressing impact on the economy. Learn about deflation, how to recognize it, and whether it's a threat right now.

Which Is the Bigger Concern - Inflation or Recession?
Has the government stimulated the economy so much that inflation is now a bigger threat? Or is further recession more of a concern? What is your opinion?

What is the Value of a Dollar Today
The value of a dollar today is less than it was in the past, thanks to inflation. Calculate the value of a dollar compared to different times in the past.

Value of Money
Money has value, but who determines how valuable money is? Find out the different ways money is valued, and why the value of money keeps changing.

Cost of Living
The cost of living is measured by the CPI over time. It can also compare between locations.

Living Wage
The living wage must keep pace with inflation.

Bureau of Labor Statistics
The Bureau of Labor Statistics reports on the CPI, or inflation rate.

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