If you are familiar with this column, you will know that I am an adjunct college professor at a public college in the Bronx and one of my summer school classes I am teaching focuses on retirement planning.

So understanding inflation is of the utmost importance. For example, $1 today at three percent inflation per year will devalue the dollar to .97 cents by next year, .85 cents in five years, and .70 cents in a decade. 

The government tells what is inflation in our economy through a measure called the Consumer Price Index (CPI). But what’s in that box?

The Bureau of Labor Stats (BLS) in recent 2017-2018 data says our CPI is composed of:

Product.              % of CPI
* Food:                    15%
* Recreation:            6%
*Transportation:      17%
* Medical:                9%
* Housing:              42%
*Apparel:                3%
* Education.           4%
* Communication   3%

In 2017, the BLS stated that inflation was 2.1 percent. So you would think that all the items above would go up by the same amount right?

Product.             % of CPI.     Price Increase
* Food:                    15%               1%
* Recreation:             6%              2%
*Transportation:       17%             2.7%
* Medical:                  9%              4%
* Housing:                  42%        2.3%
*Apparel:                   3%           -2.6%
* Education:              4%             4%
* Communication         3%.       13%

In my opinion, inflation is an average price for goods and services rendered. What should be a price Increase? A price that matches the rate of  inflation. What is greed? Anything higher than inflation.

Know any company?

Anthony Rivieccio is the founder and CEO of The Financial Advisors Group, celebrating its 20th year as a fee-only financial planning firm specializing in solving ones financial problems. Mr. Rivieccio, a recognized financial expert since 1986, has been featured by many national and local media including: Klipingers Personal Finance, The New York Post, News 12 The Bronx, Bloomberg News Radio, BronxNet Television, the Norwood News, The West Side Manhattan Gazette, Labor Press Magazine, Financial Planning Magazine, WINS 1010 Radio, The Bronx News, and The Bronx Chronicle. Mr Rivieccio is also currently an Adjunct Professor of Business , Finance & Accounting for both,  City University of New York & Monroe College, a Private University.  For financial assistance , Anthony can be reached at  (347) 575-5045. Feel free to visit their FACEBOOK Business page for past Financial Focus articles:  www.facebook.com/iwantmytaxmoney

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Welcome to the Norwood News, a bi-weekly community newspaper that primarily serves the northwest Bronx communities of Norwood, Bedford Park, Fordham and University Heights. Through our Breaking Bronx blog, we focus on news and information for those neighborhoods, but aim to cover as much Bronx-related news as possible. Founded in 1988 by Mosholu Preservation Corporation, a not-for-profit affiliate of Montefiore Medical Center, the Norwood News began as a monthly and grew to a bi-weekly in 1994. In September 2003 the paper expanded to cover University Heights and now covers all the neighborhoods of Community District 7. The Norwood News exists to foster communication among citizens and organizations and to be a tool for neighborhood development efforts. The Norwood News runs the Bronx Youth Journalism Heard, a journalism training program for Bronx high school students. As you navigate this website, please let us know if you discover any glitches or if you have any suggestions. We’d love to hear from you. You can send e-mails to norwoodnews@norwoodnews.org or call us anytime (718) 324-4998.