On September 14th, 2021, the Bureau of Labor Statistics said that in August 2021, the Annual Inflation Rate was down. Inflation Summary: Annual Inflation was 5.25% in August, 5.37% in July, and 5.39% in June. CPI Index rose from 273.003 in July to 273.567 in August. Monthly Inflation for July was 0.48% and 0.21% for August. Next release October 13th Inflation for the 12 months ending in August was down 0.12% from July. Since the BLS rounds to 1 decimal place, they reported June and July as 5.4% and August as 5.3%. The last time inflation was this high was the 5.6% of July 2008. Prior to that, we have to go all the way back to the 6.29% of October 1990 to find a higher … [Read more...]
March Inflation Data Released
The U.S. Bureau of Labor Statistics released the Annual Inflation Rate data for the year through the end of March on April 11th 2018. Annual Inflation is Up Annual inflation rate was 2.36% up from 2.21% in February. CPI was 249.554 in March, 248.991 in February, 247.867 in January and 246.524 in December. Monthly Inflation for March 2018= 0.23% Monthly Inflation for March 2017= 0.08% Next release May 10th Monthly Inflation: Typically the monthly inflation rate is highest during the first quarter (January through March) and lowest during the last quarter (October through December). March 2018 had 0.23% monthly inflation which was below February's 0.45% but it … [Read more...]
Inflation and Financial Services
I recently received the following question from Zimbabwe. Question: What is the Impact of Inflation on Financial Services Performance? B. Sibanda Zimbabwe Dear Mr. Sibanda , The most obvious effect of inflation on financial services is that an investment has to perform that much better just to remain even. For instance, under normal circumstances 10% is considered a good rate of return. However, if inflation is 100% and you only earn 10% you have not made any money you have actually lost 45% of your purchasing power. The calculations are as follows: … [Read more...]
