Saturday, November 05, 2005


I Bond Yield Near 7%

This Daytona Beach article has some info on investing and inflation. "'The single thing that affects the market the most is inflation,' said Michael Walsh, in Daytona Beach. 'It's not earnings; it's not terrorism; it's inflation.'"

"Two weeks ago, some people were startled when federal officials announced the Consumer Price Index had jumped 1.2 percent in September, the biggest monthly increase in 25 years. That pushed the cumulative inflation rate for the past 12 months to 4.7 percent. While that's still far below the double-digit rates that socked the economy in the late 1970s, it still leaves wage earners with 2.7 percent less purchasing power than they had a year ago."

"An inflation-resistant security sold by the Treasury Department received a hefty boost Tuesday. The 30-year adjustable-rate I-bond, previously sold at 4.8 percent, was raised to 6.73 percent. The bond's interest rate will be revised again next May to reflect any additional changes in the CPI."

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