The Bureau of Labor Statistics (BLS) released the September inflation numbers on October 22nd and inflation is lower for the fourth month in a row. Annual inflation in May was 2.13% in June it was down to 2.07% (although the BLS rounded both to 2.1%). In July inflation fell to 1.99% and in August it was down to 1.70% and in September it was 1.66%. Once again the BLS rounded both August and September to 1.7%. The last few months are a perfect reason why it is important to use our two decimal place inflation calculations. So although we have seen a steady decline, using the BLS numbers you would see 2.1%, 2.1%, 2.0%, 1.7%, 1.7% and so the decline is not so obvious. As the inflation rate … [Read more...]
More Quantitative Easing in the Cards?
For some time we've been saying that the FED is addicted to Quantitative Easing (QE) and that it wouldn't be so easy to kick the habit. Then last week we told you that there are signs that the Deflationary roots go deep and the only thing keeping the economy on a steady keel is all the money being created by the FED. But all that funny money is eroding the foundations and the FED can't keep it up forever. Up until now every crisis required a bigger and bigger entity to step up to the plate and assume the debt. At this point the only entity bigger than the FED left to step up is the World Bank. So when the FED runs out of bullets it will be the last round of musical chairs. But at this … [Read more...]
Cost of Living- Infographic
Over the years prices have changed (generally getting higher except possibly for technology devices). But it is difficult to track the changes if the length of the ruler is constantly changing. You need to compare it to a constant measurement. When that comes to calculating the cost of things, in order to get an idea of how prices are doing you need to adjust them for inflation. That is called measuring "constant dollars". Typically the calculation is based on the CPI or Consumer Price Index. In today's infographic created by our friends at Vouchercloud we will look at how things are doing in the ten years since 2003. … [Read more...]
Why Gold is a Good Investment for Inflationary Times
The Impact of Inflation on Savings If you keep your money in the bank or in money market funds, inflation can eat away at their value. Inflation can be deceiving because your account balances won’t go down. However, when you take your money out to buy something, you might notice that you won’t be able to buy as much as you used to. Therefore, if you don’t put your money into something that keeps up with inflation, you’ll soon find your savings won't buy as much. As an investor, you need to be prepared for the risk of inflation. It happens when there is too much money chasing too few goods, so prices have to go up (because of an increase in the money supply). When the economy is facing … [Read more...]
Australia- How to Beat the Health Cover Cut
Health fund members have discovered that the best way to avoid means-testing of the nation’s $5 billion private health insurance rebate is to prepay their premiums. After the means test on private health fund subsidies was approved by the Senate, almost 2 and a half million health fund members will start paying up to $1300 more each year for health cover starting July 1. Health insurers all across Australia braced for a huge increase of members choosing to prepay premiums after the Australian Taxation Office sent out letters warning consumers about the changes. … [Read more...]
Zimbabwe-hyperinflation-and-the-u-s-dollar (moved)
This page has moved if you are not redirected please click here: http://inflationdata.com/articles/2009/02/26/zimbabwe-hyperinflation-us-dollar/ … [Read more...]
