Kenneth Brackett With Lighthouse Financial Wilmington Releases New Information And Facts About Inflation

Ken has usually contended that the Consumer Price Index (CPI), is really a faulty measure of inflation. Incidentally, the CPI is what the cost of living adjustment for Social Safety Earnings (SSI) is linked to. If you believe that your SSI is not maintaining pace with the rising cost of living, you are correct. What's frustrating is the fact that oftentimes when SSI is adjusted upwards because of the CPI, there is usually a corresponding increase in the Medicare part B premium. One of the shortfalls from the CPI is that it excludes two of the biggest costs that we face today: energy and food. We all understand that the cost for energy and meals have elevated dramatically.

Numerous individuals are concerned about inflation and the dollar loosing value more than time. The great news is that there are inflation linked securities that really profit from the improve in inflation. Once once more nevertheless, this profit is tied to an increase in inflation as measured by the CPI.

Using a long term basis, Ken Brackett thinks that this nation will dsicover a lot greater inflation then the 3% that we've seen for many years. Many seniors keep in mind the early 1980s when we had double digit inflation. Because of the Federal Reserves intervention, Kenneth believes that we will see inflation remain low through 2016. Part of this really is due to a Fed target inflation price of 2% and to the fact that the Fed will maintain the overnight lending price to much less then 2%. As a result, we will see the bond market continue to go stale and equities should continue to do well (especially when the Fed continues their bond buying plan).