What reality do you have for CPI?

Today’s news from our Fed to keep low interest rates until 2014 just spurred my need to blog after a “too-long-absence” ~ a belated Happy New Year to you & your family! Hau’oli Makahiki Hou 2012!

Following up with that news, they proceed to tell us that our long term inflation rate will be 2%. Are you kidding me?! How much do you pay for gas at the pump? Doesn’t it feel like a 2% increase??? Read this article and I’d enjoy your feedback.

What application does this have for your long term planning needs? I would definitely not recommend using anything less than a 3% inflation rate, but since the Fed eliminates food and gasoline from the Consumer Price Index (CPI), make sure your plan is reasonably taking that into consideration. This short blog entry is just to get you to ponder your future financial health. No one else will reap the rewards or consequences of your efforts. Take good care!