Tag Archives: Inflation

Don’t Leave Clients Under Insured

Posted on May 14, 2008 by in General

LossThe rising cost of goods and services impacts clients in more ways than just their cash flow. Last week I referenced an inflation graphic published by the New York Times that illustrates the effect of inflation on various spending categories. Rising inflation not only leads to potential changes to spending, it can also leave clients under insured by surprise.

 

 

Rising Replacement Costs

According to data published by the BLS, material prices for construction projects (including diesel fuel) have increased a cumulative of 30.2 percent from December 2003 to January 2008.  This is more than double the reported increase in the Consumer Price Index (CPI) of 14.5 percent for the same period.

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How is Inflation Affecting Your Clients?

Posted on May 5, 2008 by in General

InflationI encountered a unique resource on the New York Times website over the weekend.  They created a graphical representation of the most recent CPI data provided by the Bureau of Labor and Statistics.  The graphic provides a simple interface to determine which categories exhibit high inflation versus those where prices are deflating.

Follow the link to the New York Times inflation graphic.  Hover your mouse pointer over any of the sections of the chart to see detailed information about that category.

It’s fairly clear to see which categories are placing pressure on clients’ cash flow: gasoline, oil (heating and automotive), and basic food staples.  Whether or not advisers place much faith in the BLS data is one thing, but the graphic is a great concrete way to illustrate how inflation affects clients’ cash flow.