Home

Font Adjust: A | A | A
tipweek: dailyfinancialquestion_6.htm Inflation Risk

Daily Question

Inflation is no longer a financial risk to consider.

 
 

Answer

False) Even though inflation has been averaging less than 3% for the past several years, it remains a risk. The Federal Reserve tries to control inflation with its policies, but there are no assurances that they will be successful. Even a 3% inflation rate can make things more expensive over time. While the average inflation rate may be low, many people see their costs of living rise faster depending on their location, needs or spending patterns.