Eyeing the Latest Update on Inflation

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What's Happening Today

Do you think inflation has been going up, staying steady, or coming down? Or have prices just been so high lately that you don't really notice much anymore? This week, we'll find out how much prices have been rising when the latest Consumer Price Index (CPI) is released on Thursday. And that could in turn tell us whether the Federal Reserve is likely to raise interest rates further, hurting your pocketbook even more.

Economists are expecting the annual rate of inflation to slow from 8.2% to 7.9%. If it doesn't fall by at least that much, that doesn't bode well for any of us, and here's why: The Fed has been doing everything it can (mainly raising interest rates) to bring inflation down. If we see on Thursday that the interest rate hikes haven't been working, it means the central bank will have to get far more aggressive in its fight against inflation. Which means all of us, investors and regular consumers alike, could be in for more economic pain. Think more unemployment, even higher loan rates, and greater chances of recession.

Stocks are mixed right now ahead of more company earnings and the release of the latest inflation data, which could give markets a better sense of what we could expect from the Fed.

- Kristin

Editors' Picks

Goldman Sachs Sees 'Very Plausible' Path to Avoid US Recession (Bloomberg)

Covid's Drag on the Workforce Proves Persistent. 'It Sets Us Back.' (The Wall Street Journal)

Why Does The Fed Want To Kill Job Openings? (The Balance)

What the Wave of Tech Layoffs Tell Us About the Economy (CNN)

How To Get Medical Insurance After a Layoff (The Balance)

Why It Makes Sense to Save in Both a 401(k) and a Roth IRA (The Balance)

Money 101: Teaching Teens and Gen Z (The Balance)

Term of the Day

COBRA Insurance

If you lose employee health benefits because you quit, get laid off, or retire, COBRA may give you the option to continue your coverage for a limited period of time.

COBRA is short for the Consolidated Omnibus Budget Reconciliation Act. This law gives certain employees, spouses, former spouses, children, and retirees who lose their health benefits the option to continue coverage provided by their group health plan. This coverage is available for a limited time, typically 18 months, although in some instances it can extend longer.

Eligibility is subject to certain circumstances such as voluntary or involuntary job loss, reduction in the hours worked, transition between jobs, death, divorce, and other life events. Participating will also likely cost you more than what you pay for your contribution to your employer-provided insurance when you're employed by that organization.

Off the Charts

It's been getting harder to get into the housing market lately, and minority groups have been especially hard hit, research by the National Association of Realtors shows.