Your Inflation Toolkit

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.

What Is Inflation?

We also explain deflation, disinflation, and stagflation.

Hot Inflation May Mean an Even More Aggressive Fed

Factors driving high food and energy costs should ease, but timing remains uncertain.

The Real Problem With Inflation

It erodes not only wealth, but also trust.

How Much Does High Inflation Really Affect Retirees?

The answer depends on healthcare costs, Social Security benefits, and your own financial circumstances.

TIPS Versus I-Bonds

I-Bonds boast tax advantages, but purchase limits reduce appeal.

What’s Your Real Inflation Rate?

Calculating a personalized inflation rate is a start.

How Inflation Affects Your Paycheck

Learn how rising prices are likely impacting how far you can stretch your cash.

Are Annuities a Good Idea in a High-Inflation Environment?

While some annuities offer inflation protection, it may not be worth the cost. Here’s why.

When Higher Inflation Meets Your Withdrawal Rate

While few are predicting a 1970s-style inflation spiral, it’s still worth thinking through how inflation could affect your plan.

What Rising Inflation Means for Your Portfolio

Continued higher inflation would have far-reaching implications for portfolio diversification, but there’s no need to panic.

The Inflation Hedges Haven’t Hedged

When inflation arrived, they slept.

Is Your Portfolio Protected Against Inflation?

Inflation protection is more concerning for some investors than others.

For Retirees, When Inflation Arrives Is as Important as Its Magnitude

A look at retirees, inflation, and sequencing risk.

What Are TIPS, and How Do They Help Protect Against Inflation?

A quick look at the benefits and risks of Treasury Inflation-Protected Securities, and the best way to invest in them.

For Inflation Protection, Commodities Belong in the ‘Too Hard’ Pile

On the pitfalls of defending against the slow, corrosive effects of inflation with an incredibly volatile asset.

The Best Inflation-Fighting Investments for Retirees

In-retirement portfolios should include a blend of inflation hedges and inflation beaters.