6 Charts Explaining Inflation: Why it Matters to You and What You Can Do About It

A revolutionary innovation from 1780 can protect your portfolio from inflation

Photo by Sean Robertson on Unsplash

How Inflation is Measured

Headline versus Core Inflation

Source: U.S. Bureau of Labor Statistics

A Century of Inflation

Temporary Versus Permanent Inflation

Inflation Expectations

Why Inflation Matters to You

What to Do About Inflation

Inflation-Indexed Bonds

Facsimile of an example of the 1780 indexed bond, now owned by Robert Shiller; Source: Robert Shiller, 2003, “The invention of inflation-indexed bonds in early America,” NBER working paper 10183
Source: Board of Governors of the Federal Reserve System (US), 30-Year Treasury Inflation-Indexed Security, Constant Maturity [DFII30], retrieved from FRED, Federal Reserve Bank of St. Louis

I’m a Finance prof, CFA, and author of In Pursuit of the Perfect Portfolio (with Andrew Lo). I write stories about investing. (I don’t give financial advice.)

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