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Losing to inflation is only for cash held as cash (in your wallet or under the mattress, for example.)
Cash held in a 401K money market fund or equivalent (e.g. treasury I-bonds) will earn higher interest if inflation rises and so do interest rates, which is what usually happens.

Money held in money market funds or T bonds/bills loses less to inflation than cash under the mattress, but it still loses.

Current money market rates have recently risen to about 1.5% - 1.6% (they were about .2% - 0.25% lower before the last Fed increase in December). Inflation last year averaged 2.1% So, even at today's rates, money market accounts would have lost 0.5% If you use the rates prior to the last rate increase, it would have been closer to 0.75%

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