Is Inflation at 6.5% Good News?

After peaking at 9.0% in June of 2022, inflation today is down to 6.4%. That’s a considerable improvement. Will it begin to climb again? Or might it continue to go down?

My bet is that it will gradually move up in 2023 and 2024. Maybe into double-digit territory. (I’ll tell you why in a future issue.) But let’s assume that it stays the same. What does that mean in terms of future buying power?

According to the Rule of 72, an inflation rate of 6.4% will double prices in about 11 years. That would mean that just about everything that costs $100 now will cost $200 then. That may not sound so terrible… but think about it!