Kenneth Brackett With Lighthouse Financial Delaware Releases Latest Details Concerning Inflation

Kenneth Brackett has always contended that the Customer Price Index (CPI), is really a faulty measure of inflation. Incidentally, the CPI is what the price of living adjustment for Social Security Income (SSI) is linked to. In the event you believe that your SSI is not maintaining pace with the increasing price of living, you are correct. What is frustrating is the fact that oftentimes when SSI is adjusted upwards due to the CPI, there is generally a corresponding improve in the Medicare part B premium. Among the shortfalls from the CPI is that it excludes two of the greatest costs that we face these days: energy and meals. We all know that the cost for power and meals have elevated dramatically.

Many people are concerned about inflation and the dollar loosing value over time. The good news is the fact that there are inflation linked securities that really profit from the improve in inflation. Once once more nevertheless, this profit is tied to a rise in inflation as measured by the CPI.

On a longer term schedule, Kenneth Brackett feels that this nation will dsicover much higher inflation then the 3% that we've seen for a lot of years. Many seniors remember the early 1980s when we had double digit inflation. Because of the Federal Reserves intervention, Kenneth Brackett believes that we will see inflation stay low through 2016. Part of this really is because of a Fed target inflation price of 2% and towards the fact that the Fed will keep the overnight lending rate to less then 2%. As a result, we will see the bond marketplace continue to stagnate and equities should continue to do well (particularly when the Fed continues their bond buying program).