Welcome to the Stay Welfy podcast. I'm your host, Taylor Schulte, and as we all know,

inflation has skyrocketed this year. In fact, inflation jumped to a 40-year high of 8.5% just two

months ago. So why then are tips, aka Treasury Inflation Protected Securities, losing money?

And what are tips exactly?

And do they belong in a retirement portfolio?

If you want answers to these questions, you are going to love today's episode.

For all the links and resources mentioned today, just head over to you staywealthy.com forward slash 154.

The Consumer Price Index report also referred to as the monthly inflation report for the month

of May here in 2022 is scheduled to be released tomorrow.

As a reminder, these reports come out monthly.

So tomorrow, on June 10th, we're going to be given the inflation data for last month, the month of May. But the headlines that most of us will see reflects the annual inflation rate, measuring the 12-month time period from May of 2021 to May of 2022. In other words, the annual inflation rate that we see is kind of backwards looking.

For example, the April CPI report, the last report that we received, indicated that inflation was

0.3%, or said more accurately that the consumer price index had increased by 0.3%. But the annual inflation number, the 12-month number measuring April of

2021 to April of 2022, was 8.3%. And that 8.3% number is, again, what most of us saw in the news.

Because let's be honest, a headline stating that prices jumped by 0.3% probably wouldn't

generate the necessary clicks and eyeballs needed to generate meaningful advertising revenue

for these media outlets.

Anyhow, it's possible that tomorrow's inflation report announcing the consumer price

index change for the month of May, it's possible that it will reveal a lower

annual inflation number. Instead of 8.3%, maybe we see something closer to 8% or 7.9%. I'm not really sure.

And I haven't seen any intelligent forecast that are worth sharing here. But again, since the annual inflation number

that will make headlines is backwards looking across the previous 12 months, it will be most

...