As 2023 continues to fly by, one topic that has garnered plenty of attention is inflation. One of the goals of retirement, 401(k), and investment planning in the long term is to outpace inflation. As such, it makes sense then that inflation has remained a concern throughout time for investors. It is important to understand how inflation works, and more specifically impacts your investments.
The past 15 months have seen rampant increases in inflation across many different segments of the consumer market. As such, the Federal Reserve began raising interest rates back in March of 2022 and has yet to hit the pause button on rate hikes. These robust changes to the Fed’s long-standing inflation policy further illustrate the importance of understanding how inflation is reported and how it can affect your investments.