Inflation on the Rise
Sep 2, 2020
Right now, many Americans are worried about their financial health due to the impact COVID-19 has had on the country. Adding to these concerns were July’s consumer prices— excluding food and energy—which rose at the highest rate in nearly 30 years. However, this jump may not be as scary as it looks on the surface. Let’s dive into inflation on the rise.
We’ll get a better idea about the trend on inflation when the Consumer Price Index for August 2020 is released on Friday, September 11. But here are some factors to keep in mind.1
The 2% rule
According to the Bureau of Labor Statistics, core inflation is 1.6% year-over-year on an unadjusted basis. Some investors may view this as alarming given that this is the largest jump since January 1991. However, considering the Fed’s 2% target, this could be a relatively benign number.2
Inflation or Disinflation?
Chairman Powell made it known, following the most recent meeting of the Fed, that the board was wary of disinflationary pressures over inflationary ones. True, the Fed often takes a long-view approach, but this may still be positive news. Disinflation occurs when price inflation slows down temporarily. The Fed often uses this term when describing periods of slowing inflation.3
Mixed Opinions
Regardless, many professionals are divided over what this jump in price means. For some, it signals the American economy took a step toward recovery. For others, they believe inflation is already here and that July’s numbers are a warning shot across the bow.4
Despite recent headlines, many believe more data is needed before this can be called anything other than a data point. However, if you’re concerned about the trend in inflation, it’s never a bad idea to contact your financial professional to learn more about inflationary pressures or to chat about the upcoming CPI numbers due to be released in September.
Tags: Current Events, Financial Help, Personal Finance
More Insights
May 12, 2021
The San Diego Padres signed infielder Fernando Tatis, Jr., to a 14-year, $340 million contract roughly one year after the Los Angeles Dodgers inked outfielder Mookie Betts to a 12-year, $365 million deal. That brings the total to 8 baseball players who have signed long-term, $300+ million contracts. Think he needs estate planning?
May 10, 2021
What does it mean when two of the most powerful voices in American financial life seem to be saying two different things? In one corner, we have the “Oracle of Omaha,” investor Warren Buffett. As one of the nation’s richest people and most frequently sought opinions on business matters, he’s a voice that gets a … Continue reading “Buffett and Powell Talk Inflation”
May 7, 2021
How can you help cover your child’s future college costs? Saving early (and often) may be key for most families. Here are some college savings vehicles to consider
May 5, 2021
Will your retirement dreams match your reality? That’s perhaps the most critical question to ask people who are currently retired. Was your retirement what you expected, or was it something else?
May 3, 2021
A recent survey charting investor sentiment shows that 63% of investors are more interested in protecting their financial assets and planning for uncertainty in the future than anything else.1 There are many reasons for this change, but here are a few of the most impactful to keep in mind.
Top of Page
Services
Epic Capital provides the following comprehensive financial planning and investment management services: Learn More >
Find us on:
Copyright © 2021 Epic Capital Wealth Management. All Rights Reserved.
Securities offered through LPL Financial. Member FINRA/SIPC.
The LPL Financial representative associated with this website may discuss and/or transact securities business only with residents of the following states: CA, CO, DC, DE, FL, GA, IN, LA, MD, MO, MS, NC, NJ, NY, PA, SC, TN, TX, VA, VT, WA.