Inflation is creeping up again.
In April, the Consumer Price Index rose 3.8%, up from 3.3% in March and 2.4% in February and January
Bond yields are going higher. The U.S. 10-year Treasury yield has climbed by about 40 basis points year to date. Bond investors seem to be getting nervous about the chances of higher inflation and more government borrowing.
If the economy goes through a period of “higher for longer” inflation, that will be painful for consumers, and it could bring losses to investors. Should you change your investment strategy to cope with higher inflation? How to invest for higher inflation There are no guarantees that any type of investment will perform well during inflation.