Though moderate inflation during the past decade has resulted in current withdrawal rates that are a bit less for the 2000 retiree than for some retirees in the 1960s, this is hardly reassuring with further analysis based on the required future asset returns needed for sustainability.
Not exact matches
Inflation is running faster and GDP growth has picked up as well,
though business investment remains soft and consumer spending is posting
moderate gains.
So far, the decline in major commodity prices has been fairly modest,
though enough to help rates of CPI
inflation to
moderate a little.
Producer price
inflation also
moderated over the year, particularly at the earlier stages of production (Graph 70), even
though the effect of movements in oil prices was fairly small over this period.
Even
though oil prices have
moderated recently, there is concern that the Fed is ignoring overall
inflation because prices for gas and many food items are noticeably higher to many consumers.
FOMC members are concerned that
inflation will show up only with a lag,
though, and I see policymakers most likely will continue with
moderate rate increases as a hedge against future
inflation.