If inflation rises, the low yield could cause you to lose money on an inflation-adjusted basis.
Gold is the age-old hedge against rising inflation, the price of gold rising when inflation rises.
When inflation rises, for instance, bondholders will expect a higher nominal interest rate on new debt.
When inflation rises above 4%, and particularly when it reaches 6%, stockmarket valuations start to deteriorate sharply.
Meanwhile unions are angry about the proposed easing of indexing pensions to inflation, which may hurt workers if inflation rises.
The Conservatives have accused the government of "spin", arguing a 4% increase in council tax would compound previous above-inflation rises.
Future above-inflation rises planned by the previous Labour government will be scrapped - unless the price of oil falls below a certain level.
The underlying assumption is that commercial real estate values will automatically increase as inflation rises because landlords will be able to increase rental rates.
And as is usually the case in Brazil, when the economy is firing on all four cylinders, inflation rises and with it goes interest rates.
If inflation rises, the bank will hike rates again, he says.
Venezuela annual inflation rises in 2006 because of Chavez spending.
Chile: inflation rises at fastest rate in six years.
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Whether inflation rises that much or comes closer to the Federal Reserve-mandated rate of 2 percent is a discussion in and of itself, though current policy and action would seem to make the higher rate the more likely reality.
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Manuel Cortes, leader of the TSSA rail union said rail passengers had already suffered enough above-inflation fare rises.
Passengers are facing their 10th consecutive year of above inflation fare rises, with the average season ticket increasing by 4.2%.
Passenger Focus chief executive Anthony Smith said that, "after years of above-inflation fare rises, fresh increases are piling pressure on already high fares".
For example, the Fed could promise to ease until either the unemployment rate drops below seven percent or the inflation rate rises above three percent.
The cost of medicines to the NHS is increasing fast, and bosses are having to find more money to cover national insurance payments and above-inflation pay rises for healthcare staff.
Brian Strutton, the GMB's national secretary for public services, said his members would be "sickened by the imposition of another year's pay freeze", following below inflation pay rises in 2008 and 2009.
The government says it has already cut back the latest increase and is determined to reduce the cost of running railways, so it can end the era of above inflation fare rises - something I'm sure we would all welcome.
The Treasury points out, however, that pump prices are still mainly above the level at the time of the Budget of 2011, when the chancellor took the decision to scrap the so-called fuel duty escalator which produced automatic above inflation duty rises.
"What we need to see is action from the government and more pressure on... these very big lazy companies who think it's OK to clobber people with above-inflation price rises at the very time when they can least afford it, " he said.
Rather than promising to print money until the economy starts to recover, a rather vague concept, the Fed is now promising to ease until one of two things happens: the unemployment rate falls below 6.5 percent or the inflation rate rises above 2.5 percent.
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British Airways' cabin crew say they have offered to take pay cuts, a far cry from the inflation-busting rises demanded three decades ago.
He said this was largely down to a "deep and protracted squeeze" on many people's real incomes, as inflation outstrips pay rises and energy and food prices increase.
Some critics have said chained CPI is not a better way to measure inflation for Social Security recipients, because they spend so much on health care, which rises faster than inflation.
This will ensure an end to the incessant cycle of inflation-busting fares rises.
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