Don't Forget Future Inflation When Making Financial Decisions

Don’t Forget Future Inflation When Making Financial Decisions by Jia Liu, PhD – AIER People predict future inflation in many decisions they make, from taking out a car loan or a mortgage, to deciding whether to put money in CDs, bonds, or stocks.  Future inflation is also important for the expected profitability of business investment projects. Inflation for the price of a new home, for instance, was about 4.3 percent in 2015. If we estimate that this trend will continue, a home buyer would rather buy a house now than later. Inflation is also critical to consumption and production. Sluggish…