# Inflation Calculator

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### Investment in Commodities

Investing in commodities, such as copper, silver, oil, gold, and many other agricultural or raw materials, is a common way of protecting an individual from inflation since commodities are inherently valuable. Further, the demand for commodity products can increase their value in times of high inflation when money loses value. Gold has historically been seen for many years as a tool for avoiding inflation, as it is a finite resource that can be conveniently stored. Gold is the most common, while other precious metals can be used for inflation prevention.

### Investment in TIPS

In the United States, the TIPS or Treasury inflation-protected securities are financial instruments. These are U.S. bonds that provide unique protection against inflation. Since the TIPS concept is equal to inflation, as expressed in indexes like the CPI, TIPS serves as a fairly effective hedge against high inflation cycles. Typically they only constitute very small sections of the portfolio of individuals, but anyone who is looking for additional protection can opt to give their portfolio more room for TIPS. Since the majority of portfolios are largely unrelated to stocks, they are also perfect for diversifying. By comparison to other bonds, the maturation of TIPS may also be prolonged to receive term premiums. Specific inflation-indexed bonds are available in other countries, such as the German Bund index, British index-linked gilt, and the Udibonos in Mexico.

It is also common for people to buy stocks, property, antiques, arts, and many other things in order to offset inflation beyond commodities and TIPS.

References

CPI Home: U.S. Bureau of Labor Statistics. (2020). Retrieved 12 February 2020, from https://www.bls.gov/cpi/

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