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Actually, inflation measured by the CPI-U is practically zero. I have been looking at for I-bond calculations. The Mar 31 CPI-U was 184.2. The Aug 31 was 184.6 It had been running below that. So the annualized rate is (184.6-184.2)/184.2*12/5 = 0.52%. The Vanguard Tax Exempt MMkt fund is yielding 0.78% so it has a positive real rate!

Are you joking? Technically these numbers are correct, but the choice of time period leads to a biased impression.

In the last year, CPI-U is up 2.2% and core is up 1.3%.

www.bls.gov/cpi
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