Inflation continues to stress pocketbooks—and investors—in 2022. The May CPI number (which is based on a basket of products that include gasoline, food, and healthcare) rose 8.6% from a year ago—remaining at 40-year highs.
“While inflation continues to be driven by temporary issues, such as the Ukraine War, aggressive Fed tightening will probably be needed to ensure that high inflation doesn’t become embedded in the economy,” says Morningstar chief U.S. economist Preston Caldwell.
In this special report, Morningstar’s experts discuss how to think about inflation today, examine your own personal inflation rate, and safeguard against inflation’s corrosive effect on your investments.
We also explain deflation, disinflation, and stagflation.
Factors driving high food and energy costs should ease, but timing remains uncertain.
It erodes not only wealth, but also trust.
The answer depends on healthcare costs, Social Security benefits, and your own financial circumstances.
I-Bonds boast tax advantages, but purchase limits reduce appeal.
Calculating a personalized inflation rate is a start.
Learn how rising prices are likely impacting how far you can stretch your cash.
While some annuities offer inflation protection, it may not be worth the cost. Here’s why.
While few are predicting a 1970s-style inflation spiral, it’s still worth thinking through how inflation could affect your plan.
Continued higher inflation would have far-reaching implications for portfolio diversification, but there’s no need to panic.
When inflation arrived, they slept.
Inflation protection is more concerning for some investors than others.
A look at retirees, inflation, and sequencing risk.
A quick look at the benefits and risks of Treasury Inflation-Protected Securities, and the best way to invest in them.
On the pitfalls of defending against the slow, corrosive effects of inflation with an incredibly volatile asset.
In-retirement portfolios should include a blend of inflation hedges and inflation beaters.