Inflation Rate

The rate of inflation is the measure of the rise in prices of goods and services in an economy over a certain set time period. When prices rise, for the same level of income, the consumer can purchase less, which means they have less purchasing power and are “poorer” compared to the previous time period. The inflation rate is the annualized level of price changes. Excessive growth of the money supply is one cause of inflation. When the government adds more money to an economy, it devalues each bill already in circulation, lowering the value, as it now will take more money to purchase the same good or service. The inflation rate is not a problem if it is very low, but once it escalate,s it causes severe economic problems.


On Tuesday June 2, 2015, Eurostat, the European Union’s statistics office, released the eurozone area’s inflation data for May, which is at an annualized rate of 0.3%. (Source: Eurostat, June 2, 2015.) All Components Increased Except for Energy The positive…

My colleague Robert Appel (BA, BBL, LLB) issued a research paper to the subscribers of one of his financial advisories earlier this week. I thought it important that all my readers be aware of and understand the crux of what…

The Bureau of Labor Statistics (BLS) reports inflation in the U.S. economy increased by 0.1% in February from the previous month. (Source: Bureau of Labor Statistics, March 18, 2014.) As usual, these numbers have again brought up the theory of…

Following a weak second quarter, the Dow Jones Industrial and S&P 500 indices are now in positive territory for the first time since the end of the first quarter on the backs of a positive July and August. So far,…

Unless we get a major shock like war or something related to the sovereign debt crisis in Europe, I don’t think the stock market is going to experience a lot of further downside. Stock prices might drift and then trade…

As expected, there have been a lot of dividends increases from big, brand-name companies with excess cash on their books. New business investment is somewhat lagging given all the risks in the marketplace, so it’s much easier for companies to…

Because the Federal Reserve created an environment of artificially low interest rates, investors both large and small are craving income. You can’t get any real return from cash and the opportunities in bonds just barely cover the inflation rate and…

While the U.S. economy is apparently improving (at least that’s what the media has been telling us), there are more municipalities defaulting on bond payments and facing widening budget deficits. Moody’s Investors Services just released a study on the municipal…

There is plenty of rejoicing on Wall Street as traders celebrate the third anniversary of the beginning of the current bull market rally with heavy buying on Tuesday. The Dow Jones Industrials surged 218 points to above the stubborn 13,000-point…

The American Institute for Economic Research (AIER), a not-for-profit research group, believes that the Consumer Price Index (CPI)—as measured by the government—does not reflect the true inflation rate in this country. The AIER believes that the true cost of living…

Investors are excited about the fact that the Dow Jones Industrial Average has touched 13,000—a four-year high—as it rides the bear market rally higher. Let’s take a step back, dear reader, and explore the reasons to justify this current stock…