Ken Brackett With Lighthouse Financial Wilmington Delaware Releases Latest Info Regarding Inflation

Kenneth 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 Security Earnings (SSI) is linked to. If you think that your SSI is not maintaining pace using the rising cost of living, you're correct. What's frustrating is that oftentimes when SSI is adjusted upwards because of the CPI, there's generally a corresponding improve within the Medicare part B premium. One of the shortfalls of the CPI is that it excludes two of the biggest costs that we face today: power and food. We all understand that the price for power and meals have increased significantly.

Numerous people are concerned about inflation and the dollar loosing value more than time. The good news is the fact that there are inflation linked securities that actually profit from the increase in inflation. Once again however, this profit is tied to a rise in inflation as measured by the CPI.

Over a longer term basis, Ken feels that this country might find much higher inflation then the 3% that we've noticed for a lot of years. Numerous seniors remember the early 1980s when we had double digit inflation. Because of the Federal Reserves intervention, Kenneth believes that we will see inflation stay low via 2016. Component of this really is due to a Fed target inflation rate of 2% and towards the fact that the Fed will maintain the overnight lending rate to much less then 2%. Consequently, we will see the bond marketplace go on to stagnate and equities ought to continue to complete well (particularly if the Fed continues their bond purchasing program).