ALTOONA, Pa. (WTAJ) — Hold onto your wallets: the federal government released the latest consumer price index Wednesday and the numbers are troubling, to say the least.
For all of us who are not familiar with the phrase, the consumer price index is a fancy way of saying a word we all dread hearing, inflation. Over the last year, it’s up more than 4%.
It’s important because it shows how much the prices of a fixed basket of good and services for an average family of four is going up or down, in today’s case that’s the biggest yearly gain since the great recession of 2008.
Clifford Cashman CEO of Cashman Financial Group said, “The figure that we heard this morning, that was a bit alarming because it was a little higher than expected.”
This is hitting everyone’s bank account, and means your dollars don’t stretch as far. You’ve likely already seen at the grocery store, the bill is going up. The price at the pump is also going up, with the average price of a gallon of gas sitting at $3.10 in Pennsylvania.
Used car prices are often viewed as a key indicator of inflation by economists. Year to year they up more than 20%, including 10% in April alone.
So is it time to fret and worry about the 401k? According to Cashman Financial, we are not there yet.
“I think the feds will keep it under control, and how do they keep it under control? By raising interest rates,” Cashman said.