Last week the Bureau of Labor Statistics reported that the year-over-year increase in the CPI (Consumer Price Index) came in at 4.2%, which according to the Wall Street Journal, was the most significant increase in the price index since the summer of 2008. This report has injected further concern for a central issue for many investors - inflation.
Prices are rising for some everyday goods and services as well as for essential commodities. The fastest increases in decades could threaten growth in certain sectors, impact household spending, and affect the value of savings and investments. These concerns will only grow as the economy returns to pre-pandemic levels. What perspective should long-term investors have on inflation as business activity accelerates? As written previously, are we entering a New Inflation Paradigm?
We explore in this episode of The Wealth Effect Podcast:
Matt Faubion, CFP®
Founder - Wealth Manager
Show notes and charts:
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