The Consumer Price Index shows that inflation rose 2.9% over the past 12 months with a 0.4% increase from the previous month. While the Federal Reserve’s target is 2%, generally viewed as a healthy inflation rate, this marks solid progress compared with the 8.0% and 4.7% averages in 2022 and 2021.
Still, certain categories remain very elevated, including used cars/trucks, natural gas, electricity, and dining out. On the other hand, a few areas are experiencing price declines, such as gasoline which is down 6.6%.
To protect yourself against inflation, it’s important not to let money sit idle. Cash in checking accounts or under the mattress loses value over time. On the other hand, investing has the potential to earn returns near 10% annually, giving you a chance to stay well ahead of a 2.9% inflation rate.
Source: Consumer Price Index & Federal Reserve
Check out the link on our page to learn more about the best investing course ever created. Also, be sure to read the disclaimer on our page.
© 2025 The Personal Finance Wizards, LLC