Ken Brackett With Lighthouse Financial Wilmington Releases Latest Info About Inflation

Ken has usually 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 Safety Earnings (SSI) is linked to. In the event you believe that your SSI isn't maintaining pace with the rising cost of living, you are correct. What's frustrating is the fact that oftentimes when SSI is adjusted upwards due to the CPI, there's generally a corresponding increase in the Medicare component B premium. Among the shortfalls of the CPI is the fact that it excludes two from the greatest costs that we face today: energy and meals. All of us know that the cost for energy and food have increased significantly.

Many individuals are concerned about inflation and also the dollar loosing worth more than time. The good news is the fact that you will find inflation linked securities that really profit in the increase in inflation. Once again however, this profit is tied to a rise in inflation as measured by the CPI.

Using a longer term basis, Ken Brackett thinks that this country will dsicover much higher inflation then the 3% that we've noticed for many years. Numerous seniors keep in mind the early 1980s when we had double digit inflation. As a result of the Federal Reserves intervention, Ken believes that we will see inflation stay low through 2016. Component of this really is because of a Fed target inflation price of 2% and to the reality that the Fed will maintain the overnight lending rate to much less then 2%. As a result, we'll see the bond market continue to stagnate and equities should continue to do well (especially if the Fed continues their bond purchasing program).