Step 5. Use half of their 401(k) assets to purchase inflation-indexed annuities.
That's because retirees tend to more frequently purchase inflation-sensitive goods and services such as medication, hospital services and other health care arrangements, while younger consumers are more apt to spend on things like electronics, clothing and housing.
Results For the full sample, mean calories purchased did not change from before to after regulation (828 v 846 kcal, P=0.22), though a modest decrease was shown in a regression model adjusted for restaurant chain, poverty level for the store location, sex of customers, type of purchase, and inflation adjusted cost (847 v 827 kcal, P=0.01).
Obviously, a month-to-month programme makes it very easy to slow purchases if inflation looks set to get out of hand.
Adjusted for inflation, purchases rose 0.5percentt in November, the Commerce Department said.
Cash and Treasury securities "keep your principal intact," he added, though they lose some purchasing power to inflation.
"They see their incomes purchasing more as inflation weakens in the year ahead, mainly as a result of declining energy prices," said Richard Curtin, director of the surveys.
That is because it may deplete its capital by selling assets at a loss or paying interest on reserves to prevent bond purchases from fuelling inflation.
Senator Richard C. Shelby of Alabama, the committee's senior Republican, told Mr. Bernanke that he had concerns that additional bond purchases would fuel inflation.
But the central bank has shown no interest in expanding its pace of asset purchases to nudge inflation up while continuing to help bring unemployment down.
The public mood remains sour amid worries about inflation, purchasing power and the country's place in a less stable world.
