Inflation

Inflation-Adjusted Retirement Planning

Inflation

Future US $ Inflation Rates

Inflation Rate Projections

The future inflation rate you choose has a large impact in the out years as to how much shrinkage you project will occur to your wealth. The historical average rate of inflation from 1917 through 2007 is 3.4%. The currant average rate of inflation for the years 1991 through 2007 is only 2.6%. A reasonable compromise is to plan using 3% as the probable future average rate of inflation.

In the chart below are several projections of how much shrinkage of wealth might occur at various rates of future inflation.

Historical US $ Inflation Rates	Current US $ Inflation Rates	Future US $ Inflation Rates
The US Consumer Price Index	Money as a Commodity (Supply versus Demand)	Adjusting Retirement Income for Inflation
The Real Rate of Interest	Countering Inflation	Constant Dollars